Lawmakers have raised serious concerns over rising pension liabilities at Pakistan Railways, urging the department to develop a sustainable mechanism to protect pensioners while safeguarding its long-term financial health. The issue was discussed during a meeting of the National Assembly Standing Committee on Parliamentary Affairs, which highlighted that Railways continues to pay retirees entirely from its own resources.
During the meeting chaired by MNA Rana Iradat Sharif Khan, officials explained that Pakistan Railways is the only government organisation without a central pension fund, forcing it to finance pensions directly from operational revenues. This structure has placed growing pressure on the department as pension-related obligations continue to rise year after year.
Briefing the committee, the Member Finance of Pakistan Railways said pension expenses now include commutation payments, leave encashment, benevolent fund dues, and claims under the Prime Minister’s Assistance Package. He noted that these costs are increasing at a pace much faster than Railways’ income, limiting the organisation’s ability to invest in infrastructure, safety, and service improvements.
Committee members stressed that any new framework must ensure full protection of pensioners’ rights, while also being financially viable for the organisation. Lawmakers emphasized that without a structured pension model, the growing burden could further weaken Pakistan Railways’ finances and operational capacity.
