Oil and Gas Development Company Limited (OGDCL) has announced it will recover Rs80 billion from Uch Power Plant under the government’s circular debt resolution scheme — a move that industry insiders see as another example of state-backed favoritism and collusion. The disclosure was made at the Pakistan Day Conference 2025, where OGDCL presented what critics describe as a “carefully curated success story” to foreign investors.
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OGDCL’s CFO Anas Farook told participants the company will also receive a second interest instalment of Rs7.7 billion against Term Finance Certificates (TFCs) within days, reducing the state’s outstanding dues to Rs76.6 billion, payable in the next 10 months. Meanwhile, OGDCL has already transferred Rs42 billion in dividends directly to the government — its largest shareholder — highlighting the cozy give-and-take between Islamabad and its flagship energy arm.
Analysts argue that such arrangements expose the structural conflict of interest, as the government plays regulator, debtor, and shareholder simultaneously. While OGDCL’s receivables are being swiftly cleared, independent power producers and other sector players continue to languish under unpaid dues.
The company admitted persistent gas curtailment but reassured investors it was negotiating with the government for third-party gas sales and redirection of cargoes. Sources, however, say OGDCL’s “adjustment privileges” — such as redirecting curtailment away from high oil-yielding fields like Nashpa — are a luxury not afforded to private operators.
On the exploration front, OGDCL trumpeted its partnerships with US and Turkish firms in offshore blocks, as well as progress in Abu Dhabi and Reko Diq. Yet, critics warn that the government’s fast-tracking of OGDCL’s deals while broader sectoral reforms remain stalled is further proof of selective patronage.
In effect, OGDCL is being showcased as a success story for foreign investors, while the deeper crisis of circular debt and discriminatory payouts to state-owned entities remains unresolved. For many observers, the Rs80 billion Uch Power recovery is less a sign of systemic reform and more a backroom settlement between OGDCL and its government shareholder — raising fresh concerns about transparency and fairness in Pakistan’s energy sector.