Categories: Material Information

OGDC to receive Rs 82 Billion from the government of Pakistan

In a notification sent to PSX on 27/06/2024, OIL & GAS DEVELOPMENT COMPANY LIMITED (OGDC) announced seeing the positive impact of the government debt initiative.

We are pleased to inform that, as part of the circular debt settlement plan, the Government of Pakistan (GOP) has approved payment of Rs 82 billion to Oil and Gas Development Company Limited (‘the Company’), representing the principal amount of the Company’s investment in Privately Placed Term Finance Certificates (PPTFC) issued by Power Holding (Private) Limited (PHL). Further, the GoP has also approved repayment of interest of Rs 92 billion in twelve equal installments commencing from July 2025. As part of settlement, OGDCL has agreed to waive off Rs 72 billion on account of liquidated damages on the directives of GoP. OGDCL had subscribed to these certificates for settling its overdue receivables from oil refineries and gas companies.
The GOP’s initiative aimed at resolving the circular debt issue paves the way for sustainable growth and enhances shareholder value.

OGDC shares were last trading at Rs.136.65 today.

Aamir Hayat

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