The National Assembly Standing Committee on Parliamentary Affairs on Wednesday urged Pakistan Railways to develop a sustainable pension relief model for its retired employees, including all beneficiaries covered under the Prime Minister’s assistance package.
The meeting, chaired by MNA Rana Iradat Sharif Khan, emphasized that any proposed model must ensure long-term financial sustainability while fully protecting the rights and welfare of pensioners.
Briefing the committee, the Member Finance of Pakistan Railways said the department is the only government institution that pays pensions to its retirees from its own financial resources.
He informed members that Pakistan Railways is facing rapidly increasing pension liabilities, including commutation, leave encashment, benevolent fund payments and claims under the Prime Minister’s assistance package.
He added that the organization does not have a dedicated pension fund, while pension-related expenses are growing much faster than its operational revenues.
This imbalance continues to place severe pressure on the railways’ budget and limits its ability to invest in core railway operations.
Committee members stressed the need for urgent reforms to ensure financial stability without compromising pensioners’ entitlements.