Pakistan Railways promises payments by 2026, but pensioners say crisis deepens
Pakistan Railways. PHOTO: EXPRESS/FILE
LAHORE:
For thousands of retired Pakistan Railways employees, the wait for long-overdue payments stretches for years, plunging many into severe financial hardship and forcing them to struggle to meet their basic needs.
Pensioners say they are unable to pay house rent, pay for medical treatment or arrange their children’s marriages because the General Provident Fund (GP Fund) and other entitlements remain unpaid. Employees who retired after March 2023 have been waiting for their contributions for almost three years.
According to information obtained by The Express PK Press Clubthe crisis has deepened further, with employees retiring after 2025 without yet receiving leave, GP fund payments, marriage allowances and other benefits. The authorities attribute these delays to a serious lack of funds within the railway administration.
Non-payment of contributions has taken a heavy toll on retirees, many of whom say they suffer from mental stress and physical illnesses but cannot afford treatment.
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Nasir Hamza, a retired railway employee, said many retirees survive by borrowing from friends and relatives in the face of rising inflation. “Some employees had planned their children’s weddings but could not take place because the money was not paid on time,” he said.
The situation is particularly difficult for employees who retired after 2023. Many had to leave government housing after retirement and are now struggling to pay rent in the private sector. Retirees say older former employees are among the hardest hit.
The difficulties continue even as Pakistan Railways claims to generate revenues worth billions of rupees. When contacted, a Pakistan Railways spokesperson said the organization was making “continuous and serious efforts” to clear pensioners’ dues.
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The spokesperson said around Rs 400 million was being disbursed every month as gratuity and all gratuity cases related to 2023 would be fully cleared by June 2026. In the current financial year, Rs 2.5 billion in gratuity has already been disbursed, he added.
He said the leave encashment and GP Fund payments had been completed until March 2025, with a total financial impact of Rs1.6 billion. All remaining obligations relating to leave encashment and the GP Fund would be settled by June 2026, he said.
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The spokesperson assured that all available resources were used to ensure timely payments. He, however, added that if additional financial assistance was provided by the federal government, the pending dues could be cleared before June.
