Oil and Gas Development Company Limited (OGDC) has confirmed the receipt of another interest payment under the government’s circular debt reduction strategy. The latest payment amounts to Rs7.73 billion and marks the fifth installment issued to the company.
Officials say the release is part of ongoing efforts to ease financial pressure in the energy sector. The circular debt problem has grown over the years due to delayed payments, power losses, and rising fuel costs. The government has announced several measures to address these issues and improve sector liquidity.
The update “Circular debt plan: OGDC receives Rs7.73bn 5th interest payment” highlights continued progress in the settlement process. According to OGDC, regular payments help stabilize company operations and support investment in exploration and production activities. The company noted that timely cash flows are essential for maintaining supply to the national energy system.
Energy analysts say the circular debt plan aims to restore confidence among state-owned and private sector companies. They believe consistent payments can help reduce outstanding obligations and improve financial discipline across the sector. However, they also caution that long-term reforms are necessary to prevent the debt from rising again.
OGDC stated that it remains committed to working with the government on broader sector reforms. The company said that clearing dues benefits all stakeholders, including fuel suppliers, power producers, and distribution companies. It also allows OGDC to plan future projects with greater financial clarity.
The company added that the fifth installment reflects steady progress, and more payments are expected under the approved mechanism. The acknowledgment that “Circular debt plan: OGDC receives Rs7.73bn 5th interest payment” underscores the importance of sustained action to keep the energy chain functional.
For now, OGDC officials say the funds will support ongoing operations and help manage outstanding receivables. The government’s circular debt strategy continues to be monitored closely by industry experts and investors. They view each successful installment as a positive step toward stabilizing Pakistan’s energy sector.
The latest development reinforces the message: “Circular debt plan: OGDC receives Rs7.73bn 5th interest payment” and the process remains on track.
Read More : OGDC Begins Tight Gas Commercial Production in Sindh
