The federal government has completed the repayment of Rs. 92 billion in interest dues to Oil and Gas Development Company Limited after the company received its twelfth and final installment under the circular debt settlement mechanism.
In a notice submitted to the Pakistan Stock Exchange on Wednesday, OGDC confirmed that it had received Rs. 7.725 billion from Power Holding Private Limited, marking the final payment in the government-approved interest repayment schedule.
The interest settlement plan, which began in July 2025, consisted of 12 equal installments and was designed to address outstanding obligations linked to Pakistan’s circular debt crisis. With the latest payment, OGDC has received the full Rs. 92 billion interest amount approved by the government.
Earlier, in 2024, the federal government also sanctioned the repayment of Rs. 82 billion representing the principal amount of OGDC’s investment in privately placed term finance certificates issued by Power Holding Private Limited.
The completion of the interest repayment schedule is viewed as a significant milestone in the government’s ongoing efforts to reduce circular debt and improve liquidity across Pakistan’s energy sector. Circular debt has long strained the financial position of power and energy companies, creating challenges for investment and operational sustainability.
Officials say the settlement mechanism was introduced to ease cash flow pressures on state-owned energy enterprises and strengthen the financial stability of the sector.
OGDC, established in 1997, remains Pakistan’s largest exploration and production company and plays a critical role in meeting the country’s domestic oil and natural gas requirements.
