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OGDCL’s cash flow got a major lift after receiving Rs41.8 billion from Uch Power under the government’s circular debt clean-up plan. The payout helps ease long-stuck receivables and offers a much-needed breather for Pakistan’s strained energy ecosystem.
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Oil and Gas Development Company Limited – OGDC confirmed that it has received Rs41.8 billion from Uch Power (Private) Limited, marking a notable development in the federal government’s ongoing drive to unwind the country’s mounting circular debt. The company disclosed the update through a formal notification to both the Pakistan Stock Exchange and the London Stock Exchange, noting that the amount was settled against long overdue payments.
According to OGDCL, the inflow is aligned with the government’s broader initiative to restore financial stability in the energy supply chain, where delayed settlements have squeezed liquidity and slowed sector performance for years. The company added that the funds will strengthen its cash position and help stabilise operations in upstream activities.
The disclosure was made under Section 96 of the Securities Act, 2015, and PSX Clause 5.6.1(a), with OGDCL requesting immediate circulation of the information to market participants. The company underscored that the receipt is a step forward in reducing payment bottlenecks that have contributed to the sector’s ballooning financial backlog.
As part of the same settlement framework, the government had earlier approved Rs82 billion to compensate OGDCL for the principal amount invested in Power Holding Limited’s Privately Placed Term Finance Certificates (PPTFC). In addition, Islamabad green-lit a further Rs92 billion in accumulated interest, which will be cleared in twelve monthly instalments.
OGDCL said the latest payment signals meaningful progress toward unclogging the circular debt pipeline—an issue that continues to weigh down the country’s energy producers, distributors, and fuel suppliers alike.
