Oil and Gas Development Company Limited (OGDCL) has received its first interest payment of Rs. 7.725 billion from Power Holding (Private) Limited (PHL), initiating the government-backed circular debt settlement plan.

According to a filing on the Pakistan Stock Exchange (PSX), this payment is part of a broader arrangement involving twelve equal monthly installments totaling Rs. 92 billion in interest. The repayment began in July 2025.

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OGDCL stated that the transaction marks a key milestone in the Government of Pakistan’s ongoing efforts to address the longstanding circular debt crisis in the energy sector.