Pakistan Railways is encountering challenges with pending employee-related liabilities amounting to Rs 21.36 billion. Despite claims of improved financial performance, retired and serving staff have not received their dues. A dispute has arisen between the Railways Ministry and the Finance Ministry regarding the release of funds needed to settle these outstanding payments.
The Railways Ministry has attributed responsibility to the Finance Ministry and has presented relevant details to the National Assembly. Employees retiring after March 2023 are still awaiting their dues. Additionally, a significant portion of the pending amount includes Rs 10 billion linked to gratuity claims and Rs 7.52 billion under the Prime Minister’s Assistance Package.
Moreover, marriage grants totaling Rs 1.18 billion and benevolent fund amounts of Rs 1.52 billion remain unpaid. Despite requests for additional funds, the Finance Ministry has not allocated them. A request for an extra grant of Rs 8.19 billion has been pending since December 2025, with no action taken by the Economic Coordination Committee in the past five months.
Documents reveal that Pakistan Railways generated Rs 93 billion in revenue in the previous financial year, supplemented by Rs 64 billion in government grants. Concerns have been raised about Pakistan’s focus on economic stabilization without structural reforms, warning of potential recurring crises and stagnation. Prime Minister Shehbaz Sharif highlighted the adverse impact of the US-Iran conflict on Pakistan and regional economies due to increased energy prices, geopolitical uncertainty, and disruptions in trade and supply chains.
