Pakistan’s much-publicised “railway reform model” is now unravelling under the weight of unpaid salaries, stalled pensions and mounting financial chaos. Despite boasting of higher revenues, Pakistan Railways has failed to clear more than PKR 21 billion owed to employees and pensioners, exposing the deep cracks in the country’s economic management.
Islamabad: Claims by Pakistan Railways of financial recovery are facing sharp criticism after reports revealed that thousands of serving and retired employees are still waiting for long-pending payments. According to media reports, over PKR 21 billion in dues remain unpaid as a blame game continues between the Ministry of Railways and the Ministry of Finance over the release of funds.
The crisis has hit retired workers the hardest. Employees who retired after March 2023 have reportedly not received their post-retirement benefits even after months of waiting. Nearly PKR 10 billion in gratuity payments owed to around 5,578 retired employees is still pending. In another embarrassment for the government, PKR 7.52 billion under the Prime Minister’s assistance package remains stuck in 4,135 unresolved cases.
The financial mess does not end there. Reports also revealed that PKR 1.18 billion meant for employee marriage grants and PKR 1.52 billion from the benevolent fund have not been released. The continued delay has triggered growing anger among railway workers and pensioners, many of whom accuse the government of abandoning employees while making tall claims of economic reform.
Adding to the controversy, the railway ministry reportedly sought an emergency grant of PKR 8.19 billion in December 2025, but the proposal has still not been approved. Shockingly, the matter has allegedly not even appeared on the agenda of the Economic Coordination Committee during the past five months.
Official figures make the situation even more damaging for the government. Although Pakistan Railways earned PKR 93 billion in the previous financial year, the department still survived on government support worth PKR 64 billion. The disclosures have intensified criticism of Pakistan’s so-called economic revival, with opposition leaders and employees calling the railway system a symbol of financial mismanagement and administrative failure.
