Pakistan Railways promises payments by 2026, but pensioners say the crisis is worsening
Pakistan Railways. PHOTO: EXPRESS/FILE
LAHORE:
For thousands of retired Pakistan Railways employees, the wait for long overdue payments has stretched over several years, pushing many into dire financial straits and leaving them struggling to meet basic needs.
Pensioners say they are unable to pay rent, afford medical treatment or arrange their children’s marriages as gratuity, General Provident Fund (GP Fund) and other entitlements remain unpaid. Employees who retired after March 2023 have been waiting for their dues for almost three years.
According to information obtained by Express Pakinomistthe crisis has been further widened, with employees retiring after 2025 also yet to receive leave payments, GP Fund payments, marriage grants and other benefits. Officials attribute the delays to a severe lack of funds within the railway administration.
The non-payment of dues has taken a toll on pensioners, many of whom say they suffer from mental stress and physical illnesses but lack the money to seek treatment.
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Nasir Hamza, a retired railway employee, said many pensioners are surviving by borrowing from friends and family in the face of rising inflation. “Some employees had planned their children’s marriages but could not go ahead because the money was not paid on time,” he said.
The situation is particularly difficult for employees who retired after 2023. Many were required to leave public housing after retirement and are now struggling to pay rent in the private sector. Pensioners say older former employees are among the hardest hit.
The crunch continues even as Pakistan Railways reports generating revenue worth billions of rupees. When contacted, a Pakistan Railways spokesperson said the organization was making “continuous and serious efforts” to clear the pensioners’ dues.
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The spokesman said that about Rs400 million was paid monthly as gratuity and all gratuity cases related to 2023 would be fully settled by June 2026. During the current financial year, Rs2.5 billion in gratuity has already been paid, he added.
He said that payments of leave deposits and GP Fund had been completed till March 2025, with a total financial impact of Rs 1.6 billion. All remaining liabilities related to leave encashment and GP fund would be cleared by June 2026, he said.
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The spokesman assured that all available resources were being used to ensure timely payment. However, he added that if additional financial assistance was provided by the federal government, the outstanding dues could be cleared by June.
