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Pakistan Railways Faces 10x Financial Gap as Liabilities Soar to PKR 27.4bn

Pakistan Railways is grappling with a severe financial imbalance where its short-term liabilities of PKR 27.4 billion dwarf its operational surplus of PKR 2.4 billion. Officials disclosed to a parliamentary committee that they have made partial payments toward long-standing employee commutation and leave encashment dues. Separately, pensioners have filed complaints with the Prime Minister's Delivery Unit over delayed payments. In the same committee meeting, the National Highway Authority briefed on traffic congestion at a new toll plaza, with a permanent 12-lane facility nearly complete to alleviate the issue.

Key Points: Pakistan Railways Financial Crisis: PKR 27.4bn Liabilities

  • PKR 27.4bn liabilities vs. 2.4bn surplus
  • Partial payment of employee dues
  • Pensioner complaints to PM's Delivery Unit
  • NHA toll plaza congestion issues
  • Permanent 12-lane plaza 90% complete
2 min read

Pakistan: Railways' financial crisis deepens amid structural failures

Pakistan Railways' liabilities exceed surplus by over tenfold, revealing a deep structural funding gap and pensioner payment delays.

"its immediate obligations have reached PKR 27.4 billion - Dawn"

Islamabad, February 20

Pakistan Railways is confronting a widening financial imbalance, with its short-term liabilities exceeding its operational surplus by more than tenfold, according to proceedings of a parliamentary committee meeting, as reported by Dawn.

According to Dawn, during a session of the National Assembly's Standing Committee on Parliamentary Affairs, chaired by Rana Iradat Sharif Khan, officials disclosed that while the railways generated an operational surplus of Pakistani Rupees (PKR) 2.4 billion, its immediate obligations have reached PKR 27.4 billion.

The figures point to a serious structural funding gap that questions the sustainability of the department's financial model. The member finance of Pakistan Railways informed lawmakers that despite the fiscal strain, the department has attempted to manage long-standing employee-related liabilities.

PKR 5.622 billion has been released toward commutation payments, clearing cases up to May 31, 2023, while Rs1.103 billion has been paid for leave encashment dues cleared up to March 31, 2024. However, officials admitted that these disbursements only partially address the broader imbalance between resources and commitments.

Concerns were also raised regarding complaints filed by railway pensioners with the Prime Minister's Delivery Unit, highlighting dissatisfaction among retired employees over delayed payments. In a separate briefing, representatives of the National Highway Authority (NHA) updated the committee on traffic congestion at the Phoolnagar Motorway Toll Plaza in Kasur district, as highlighted by Dawn.

The toll facility was established in March 2025 at KM 1215-1216 following approval from the NHA Executive Board to boost revenue. Initially, a temporary three-lane structure on each side was installed on the existing road, which led to recurring traffic bottlenecks. Motorists were slow to adapt to the revised toll collection mechanism, causing extended queues. Authorities stated that construction of a permanent 12-lane plaza, six lanes on each side, is 90 percent complete and is expected to mitigate congestion once operational, as reported by Dawn.

- ANI

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Reader Comments

P
Priya S
Very sad to hear about the pensioners facing delayed payments. After a lifetime of service, they deserve their dues on time. The financial crisis seems deep-rooted. Building a 12-lane toll plaza won't fix the core issue of revenue vs expenditure. 🤔
R
Rohit P
From an infrastructure perspective, this is interesting. They're installing a massive toll plaza to boost revenue, but if the main railway department is sinking, what's the point? It feels like treating a symptom while the patient is critically ill. NHA might be doing okay, but PR is in serious trouble.
S
Sarah B
As someone who follows economic issues in the region, this is a worrying sign. Such a large funding gap in a critical national transport utility can have ripple effects on the entire economy. Efficient railways are the backbone of trade and mobility.
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Vikram M
The article mentions "structural failures" – that's the key. You can keep putting temporary bandaids (like the 3-lane toll plaza causing jams), but without fixing the system, the problem will keep coming back. Wish them the best, but they need a complete overhaul. Jai Hind.
K
Kavya N
It's always the employees and pensioners who suffer the most in these crises. Releasing funds for commutation and leave encashment is good, but it's only a partial solution. The government needs to prioritize its people. Hope the situation improves soon.

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