Oil and Gas Development Company Limited has received Rs. 7.725 billion under the government’s circular debt settlement plan, marking the tenth installment in the ongoing payment schedule aimed at easing financial stress in the energy sector.

The company said the payment was made by Power Holding Private Limited as interest under Term Finance Certificates, in accordance with a government-approved mechanism designed to address persistent circular debt.

Under the arrangement, a total interest amount of Rs. 92 billion is being repaid in 12 equal monthly installments, with payments having started in July 2025.

OGDCL has accumulated significant receivables over time because of unpaid dues from power producers and gas companies, which have weighed on its cash flow and constrained its investment capacity.

The latest payment signals continued progress in the government’s efforts to reduce circular debt and improve liquidity across the energy chain.

OGDCL said the disclosure had been made in line with regulatory requirements for informing the Pakistan Stock Exchange and other stakeholders.