ECC Approves Framework to Settle Dues of OGDCL and SNGPL

The ECC Approves Framework to Settle Dues of OGDCL and SNGPL Economic Coordination Committee has approved a comprehensive framework to resolve outstanding dues and rationalize tariffs among major state-owned energy companies including Oil and Gas Development Company Limited Sui Northern Gas Pipelines Limited nuclear power plants (NPPs) and government-owned power plants (GPPs) according to a statement from the Finance Division.
The framework developed under the Prime Minister’s Task Force on Power Sector Reforms designed to address long standing financial bottlenecks within Pakistan’s energy value chain. It seeks to streamline inter entity payments and promote fiscal discipline and reduce inefficiencies that have contributed to persistent liquidity challenges in the sector.

Clearing Long Standing Dues

Under the approved plan, the involved entities have reached agreements for mutual settlement of long-pending receivables and payables. Certain financial claims will be waived to restore much-needed liquidity across the energy sector.
This step is part of the government’s ongoing effort to reduce circular debt accumulation, a major issue that has burdened the national exchequer and disrupted the financial stability of key utilities and power producers.

Positive Impact on OGDCL and SNGPL

Officials said the ECC Approves Framework to Settle Dues of OGDCL and SNGPL and the decision will directly benefit both which have faced liquidity pressures due to delayed payments from the power sector. The settlement framework is expected to unlock billions in receivables improving cash flow and strengthening the companies ability to fund exploration , infrastructure and expansion projects.

The improved liquidity position will also enhance dividend payouts for shareholders and help the companies reinvest in upstream and midstream energy operations crucial step toward energy sustainability.

Broader Energy Sector Reforms

This initiative is aligned with the government’s broader energy sector reform agenda which aims to reduce the cost of power generation to improve financial transparency, and ensure long term tariff stability. By facilitating smoother interagency payments and reducing financial overlaps the government hopes to build a market-based sustainable energy ecosystem that attracts investment and restores the health of Pakistan’s power and gas sectors.

Toward Sustainable Energy Future

Analysts view the ECC’s approval as a significant policy shift that could mark the beginning of financial stability in Pakistan’s energy landscape. The decision not only eases pressure on state-owned firms but also sends a strong signal of fiscal responsibility and reform-oriented governance.

With this framework in place stakeholders expect improved financial coordination reduced circular debt and renewed investor confidence all vital for Pakistan’s path toward energy self-reliance and economic stability.

Conclusion

The ECC Approves Framework to Settle Dues of OGDCL and SNGPL Economic Coordination Committee has approved a comprehensive framework to resolve outstanding dues and rationalize tariffs among major state-owned energy companies, including Oil and Gas Development Company and Analysts view the ECC’s approval as a significant policy shift that could mark the beginning of financial stability in Pakistan’s energy landscape. The decision not only eases pressure on state-owned firms . With this framework in place stakeholders expect improved financial coordination reduced circular debt and renewed investor confidence all vital for Pakistan’s path toward energy self-reliance and economic stability.