Oil and Gas Development Company Limited (OGDCL) has received the 12th and final interest installment of Rs. 7.725 billion from Power Holding (Private) Limited, completing the Rs. 92 billion interest repayment approved under the government’s circular debt settlement plan.

In a notice submitted to the Pakistan Stock Exchange (PSX) on Wednesday, OGDCL said the latest payment marks the completion of the 12-installment schedule introduced by the federal government to reduce circular debt in the energy sector.

With the final installment, the company has recovered the full Rs. 92 billion in interest on its investment in privately placed term finance certificates issued by Power Holding (Private) Limited.

Separately, the federal government had approved the repayment of Rs. 82 billion in principal in 2024, representing OGDCL’s original investment in the certificates.

The interest repayment plan began in July 2025, with equal installments paid over 12 months. OGDCL said the payments were made under the government’s broader strategy to improve liquidity in the energy sector and gradually reduce circular debt.

Pakistan’s circular debt has long strained the country’s power sector by limiting cash flows across the energy supply chain. The repayment mechanism through Power Holding (Private) Limited was introduced to ease financial pressure on state-owned energy companies and support the sector’s financial stability.