PR pensions surpasses operational revenues

ISLAMABAD:

The National Assembly Standing Committee on Parliamentary Affairs on Wednesday urged Pakistan Railways to develop a sustainable model for providing relief to pensioners, including all beneficiaries covered under the Prime Minister's package.

The meeting was chaired by its chairman, MNA Rana Iradat Sharif Khan, who highlighted that such a sustainable model should ensure long-term financial viability while safeguarding the welfare and entitlements of all concerned pensioners.

Member Finance Railway briefed the committee that the railways, an attached department of the Railways Division, was the only government department that pays pensions to its retired employees from its own resources.

He further apprised the committee that the Pakistan Railways (PR) was facing substantial and rapidly growing pension liabilities, i.e., Commutation, Leave Encashment, Prime Minister's Assistance Package and Benevolent Fund related claims, without a dedicated pension fund.

Pension expenditure has grown at a rate significantly higher than operational revenues, placing persistent pressure on the budget of Pakistan Railways and constraining investment in its core operations.