Pakistan Railways promises payments by 2026, but retirees say crisis is getting worse
Pakistan Railways. PHOTO: EXPRESS/ARCHIVE
LAHORE:
For thousands of retired Pakistan Railways employees, the wait for late payments has dragged on for years, pushing many into severe financial difficulties and leaving them struggling to meet their basic needs.
Pensioners say they cannot pay house rent, afford medical treatment or arrange marriage for their children 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 The express PAkGazetteThe crisis has widened further, and employees retiring after 2025 will still not receive leave encashments, GP Fund payments, marriage grants and other benefits. Officials attribute the delays to a serious shortage of funds within the railway administration.
Non-payment of dues has taken a heavy toll on retirees, many of whom say they suffer from mental stress and physical illness but lack the money to seek treatment.
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Nasir Hamza, a retired railway employee, said many pensioners survive by borrowing from friends and family in the face of rising inflation. “Some employees had planned their children’s marriage but could not carry it out 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 their government housing after retiring and are now struggling to pay rent in the private sector. Retirees say elderly former employees are among the hardest hit.
Difficulties continue even as Pakistan Railways reports generating revenues 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 spokesperson said around Rs 400 crore was being paid every month as gratuity and all gratuity cases related to 2023 would be fully resolved by June 2026. During the current financial year, Rs 2,500 crore in gratuity has already been disbursed, he added.
He said license fee and GP Fund payments had been completed by March 2025, with a total financial impact of Rs 1,600 crore. All remaining liabilities related to license encashment and the GP Fund will be settled by June 2026, it said.
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The spokesperson assured that all available resources were being used to ensure timely payments. However, he added that if the federal government provided additional financial assistance, the outstanding dues could be cleared by June.
