The National Assembly Standing Committee on Parliamentary Affairs has called on Pakistan Railways to formulate a sustainable mechanism to provide relief to its pensioners, including those covered under the Prime Minister’s assistance package.
The issue was taken up during a meeting chaired by MNA Rana Iradat Sharif Khan, where members emphasised that any proposed framework should balance the protection of pensioners’ entitlements with the organisation’s long-term financial capacity.
During the briefing, officials informed the committee that Pakistan Railways, an attached department of the Railways Division, remains the only government organisation that finances pension payments for its retired employees entirely from its own resources, without support from a central pension fund.
The Member Finance of Pakistan Railways told lawmakers that the organisation is facing steadily rising pension-related obligations, including commutation, leave encashment, Prime Minister’s Assistance Package claims, and benevolent fund payments. These liabilities, officials said, have been increasing in the absence of a dedicated pension fund.
The committee was also told that pension expenditure has been growing at a rate far exceeding operational revenues, creating sustained pressure on Pakistan Railways’ budget and restricting its ability to invest in core operational needs.
Members of the committee stressed the need for a structured and financially viable pension model to address the growing burden while ensuring that the welfare and rights of pensioners remain fully protected.
