Pakistan Railways' turnaround questioned as Rs 21 billion in employee dues remain unpaid

Claims of improved financial performance by Pakistan Railways have fallen flat as dues worth Rs21.36 billion payable to retired and serving employees remain unpaid.Railway's financial performance have come under scrutiny after it emerged that more than  Rs 21 billion in payments 

According to details, a dispute has also emerged between the Ministry of Railways and the Ministry of Finance over the release of funds for the payment of pending liabilities. The Ministry of Railways placed the responsibility on the Finance Ministry and submitted all related documents to the National Assembly.

According to the documents, railway employees retiring after March 2023 have yet to receive their dues.

An amount of Rs10 billion remains outstanding in 5,578 gratuity claims filed by retired employees, while Rs7.52 billion is pending against 4,135 claims under the Prime Minister’s Assistance Package.

In addition, arrears of Rs1.18 billion under marriage grants and Rs1.52 billion under the benevolent fund are still unpaid.

The Ministry of Railways stated that despite repeated requests, the Finance Ministry has not allocated additional funds.

A summary seeking an additional grant of Rs8.19 billion has remained pending since December 2025.

The matter has also not been placed on the agenda of the Economic Coordination Committee during the past five months.

Documents have showed that Pakistan Railways generated revenue of Rs93 billion during the previous financial year, while receiving Rs64 billion in government grants.