ISLAMABAD: The National Assembly Standing Committee on Parliamentary Affairs expressed serious concern over Pakistan Railways mounting pension liabilities, despite improved financial performance and substantial government support, and called for a sustainable, long-term pension model to safeguard retired employees.
The issue was discussed during a committee meeting at Parliament House, where officials acknowledged operational turnaround but warned that rising pension costs continue to strain the PR finances and limit investment in core services.
The committee met with MNA Rana Iradat Sharif Khan in the chair at Parliament House on Wednesday.
Member Finance Railway briefed the committee that Pakistan Railways (PR), an attached department of the Railways Division, is the only government department that pays pensions to its retired employees from its own resources. He said that the Pakistan Railways (PR) is facing substantial and rapidly growing pension liabilities, i.e., Commutation, Leave Encashment, Prime Minister’s Assistance Package, and Benevolent Fund-related claims, without a dedicated pension fund.
He said that pension expenditure has grown at a rate significantly higher than operational revenues, placing persistent pressure on the budget of Pakistan Railways and constraining investment in core railway operations. The PR has been undertaking operational and financial reforms aimed at improving revenue generation, controlling expenditures, and reducing dependence on government support.
The Additional Secretary of the Finance said that Pakistan Railways has demonstrated a gradual but sustained improvement in its financial and operating performance. He said that the operating performance of PR showed a significant turnaround.
“Revenue increased from Rs 48.649 billion in FY 2020-21 to Rs 93.601 billion in FY 2024-25. Operating losses of Rs 8.196 billion in FY 2020-21 and Rs 8.460 billion in FY 2022-23 were reversed to operating surplus of Rs 0.412 billion in FY 2023-24, which further improved to Rs 2.417 billion in FY 2024-25.
Copyright Business Recorder, 2025
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