‘We survive by borrowing’: Railways retirees wait years for dues

Pakistan Railways promises payments by 2026, but retirees say crisis is worsening

LAHORE:

For thousands of retired Pakistan Railways employees, the wait for long-overdue payments has stretched into years, pushing many into severe financial hardship and leaving them struggling to meet basic needs.

Retirees say they are unable to pay house rent, afford medical treatment or arrange their children’s marriages 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 nearly three years.

According to information obtained by The Express Tribune, the crisis has widened further, with employees retiring after 2025 also yet to receive leave encashment, GP Fund payments, marriage grants and other benefits. Officials attribute the delays to a serious shortage of funds within the railway administration.

The non-payment of dues has taken a heavy toll on retirees, many of whom say they are suffering from mental stress and physical illnesses but lack the money to seek treatment.

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Nasir Hamza, a retired railway employee, said many pensioners are surviving by borrowing from friends and relatives in the face of rising inflation. “Some employees had planned their children’s marriages but could not go ahead because the money was not paid on time,” he said.

The situation is particularly difficult for employees who retired after 2023. Many were required to vacate government accommodation after retirement and now struggle to pay rent in the private sector. Retirees say elderly former employees are among the worst affected.

The hardship continues even as Pakistan Railways reports generating revenue worth billions of rupees. When contacted, a spokesperson for Pakistan Railways said the organisation was making “continuous and serious efforts” to clear retirees’ dues.

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The spokesperson said around Rs400 million was being paid every month as gratuity and that all gratuity cases related to 2023 would be fully settled by June 2026. During the current financial year, Rs2.5 billion in gratuity has already been disbursed, he added.

He said payments of leave encashment and the GP Fund had been completed up to March 2025, with a total financial impact of Rs1.6 billion. All remaining liabilities related to leave encashment and the GP Fund would be cleared by June 2026, he said.

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The spokesperson assured that all available resources were being used to ensure timely payments. However, he added that if additional financial assistance was provided by the federal government, the pending dues could be cleared before June.