OGDCL receives Rs41.8 billion from Uch Power under circular debt settlement
OGDCL received Rs41.8 billion from Uch Power as part of the government's plan to resolve circular debt in Pakistan's energy sector.Summary
Oil and Gas Development Company Limited (OGDCL) announced the receipt of Rs41.8 billion from Uch Power (Private) Limited on Thursday, as part of the government’s ongoing circular debt settlement initiative. This payment addresses longstanding receivables owed to OGDCL and is a component of a broader government strategy to alleviate liquidity issues and clear backlogs within the energy sector. The disclosure was made in accordance with regulatory requirements of the Pakistan Stock Exchange (PSX).
In June 2025, the government approved a total payment of Rs 82 billion to OGDCL, covering the principal amount of the company’s investment in Privately Placed Term Finance Certificates (PPTFC) issued by Power Holding Limited (PHL). Furthermore, Rs 92 billion in interest was also approved for repayment, to be disbursed over 12 monthly installments.
OGDCL, established in 1997, is responsible for the exploration, development, production, and sale of oil and gas resources in Pakistan, succeeding the Oil and Gas Development Corporation founded in 1961.
(Source：Pakistan Today)