⚡ Flash Summary

On November 25, 2025, Oil & Gas Development Company Limited (OGDCL) announced the receipt of the fifth interest payment under Term Finance Certificates (TFCs) from Power Holding Limited (PHL). This installment is part of a circular debt settlement plan approved by the Government of Pakistan (GOP). The payment amounts to Rs 7.725 billion and is one of twelve equal monthly installments. The total interest to be repaid is Rs 92 billion, with installments commencing in July 2025, reflecting the GOP’s efforts to resolve circular debt in the energy sector.

📌 Key Takeaways

• 💰OGDCL received its fifth interest payment under TFCs.
• ✅The payment is part of the circular debt settlement plan.
• 🏢The payment was made by Power Holding Limited (PHL).
• 🤝The settlement plan is approved by the Government of Pakistan (GOP).
• 💸The installment amount is Rs 7.725 billion.
• 🗓️The payment is one of twelve equal monthly installments.
• 📈The total interest to be repaid is Rs 92 billion.
• 🗓️Installments commenced in July 2025.
• ⚡This reflects progress in addressing circular debt in the energy sector.
• 📜Compliance with Section 96 of the Securities Act, 2015 and PSX Regulations.
• ✉️The announcement was made to the Pakistan Stock Exchange Limited.
• 🏢PHL is a private limited company.

🎯 Investment Thesis

HOLD. While the receipt of the interest payment is a positive development, it is only one installment in a larger repayment plan. A ‘HOLD’ recommendation is appropriate until the full impact of the circular debt settlement on OGDCL’s financials is clearer. A price target cannot be accurately determined without further financial information, but the stabilization of cash flows contributes to long term stability.