OGDCL receives Rs41.8bn from Uch Power

The Oil and Gas Development Company (OGDCL) announced on Thursday that it received Rs41.8 billion from Uch Power (Private) Limited.

The payment was made as part of the settlement of circular debt against outstanding receivables, a notice to the Pakistan Stock Exchange (PSX) read.

“This receipt reflects the Government of Pakistan’s initiative to address circular debt in the energy sector,” the listed company informed the bourse.

Earlier, sources informed Business Recorder that the Central Power Purchasing Agency- Guaranteed (CPPA-G) would pay Rs89.5 billion to the OGDCL on behalf of Uch Power Limited and Uch Power-II from the circular debt financing facility, as a lump sum arrangement instead of 18 equal monthly instalments.

Sharing the details, the sources said that this was part of the plan approved by the ECC on a Power Division summary titled “rationalisation of LPI and potential reduction for Nuclear Power Plants (NPPs), Chashma-1, Chashma-2, Chashma-3, Chashma-4, K-2, and K-3”.

The decision was made after Prime Minister Shehbaz Sharif established a Task Force on implementing structural reforms in the power sector on August 4, 2024.

The force would identify and oversee the implementation of structural reforms in the power sector