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ISLAMABAD, Dec 24 (APP): The National Assembly Standing Committee on Parliamentary Affairs Wednesday urged the Pakistan Railways (PR) for the development of 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 Pakistan Railways (PR), 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 core railway operations Pakistan Railways (PR) has been undertaking operational and financial reforms aimed at improving revenue generation, controlling expenditures, and reducing dependence on government support.
He said that Pakistan Railways (PR) has demonstrated a gradual but sustained improvement in its financial and operating performance. The operating performance of PR shows a significant turnaround. Revenue increased from Rs. 48.649 billion in FY 2020-21 to Rs. 93.601 billion in FY 2024-25. Operating losses of Rs. 8.196 billion in FY 2020-21 and Rs. 8.460 billion in FY 2022-23 were reversed to an operating surplus of Rs. 0.412 billion in FY 2023-24, which further improved to Rs. 2.417 billion in FY 2024-25. This improvement reflects enhanced operational efficiency and expenditure control.
The additional Secretary finance briefed the committee that despite fiscal constraint, considerable budgetary allocation has been consistently provided to Pakistan Railways which amounts to Rs. 70 bn in Current Fiscal Year. The annual pension expense of Pakistan Railways is lower than the grant provided by the Government during the preceding years and that, during 2022-23 & 2023-24, an additional grant of Rs. 2.5 bn and Rs. 2 bn respectively was also arranged by Finance Division to help Pakistan Railways to clear its pension backlog. Therefore, the accumulation of arrears of pension should have been avoided.