Oil & Gas Development Company Limited (PSX: OGDC) has received Rs7.725 billion as the seventh installment under Pakistan’s circular debt settlement mechanism, the company disclosed in a filing to the Pakistan Stock Exchange (PSX) on Monday.
The payment was made by Power Holding (Private) Limited (PHL) under a Government of Pakistan (GOP)-approved plan designed to ease liquidity pressures across the energy sector. Under the agreement, a total interest amount of Rs92 billion is being repaid to OGDC through twelve equal monthly installments.
The repayment schedule began in July 2025 and is expected to conclude within the fiscal year. The latest disbursement reflects continued implementation of the government’s broader strategy to address circular debt, a long-standing challenge for Pakistan’s power and upstream energy industries.
Timely payments under this framework are viewed as critical for strengthening balance sheets, improving cash flows, and restoring investor confidence in the sector.
