Pakistan Railways is facing renewed criticism over unpaid financial obligations to its workforce, as outstanding dues owed to serving and retired employees have climbed to more than Rs21 billion despite claims of improving financial performance.

Official records submitted by the Ministry of Railways to the National Assembly show total employee-related liabilities standing at Rs21.36 billion. The issue has sparked a funding dispute between the Railways Ministry and the Ministry of Finance regarding the release of additional resources required to settle payments.

According to the documents, the Railways Ministry has repeatedly sought financial support to clear pending liabilities, but the Finance Ministry has yet to approve fresh allocations. A supplementary grant request worth Rs8.19 billion has remained pending since December 2025 and has not been taken up by the Economic Coordination Committee (ECC) for consideration over the past five months.

The ministry informed lawmakers that employees who retired after March 2023 are still waiting for their retirement benefits.

The largest portion of unpaid liabilities relates to gratuity payments, with nearly Rs10 billion outstanding against 5,578 retired employees. Payments under the Prime Minister’s Assistance Package also remain delayed, with Rs7.52 billion pending against 4,135 claims.

Additional obligations include Rs1.18 billion in unpaid marriage grants and Rs1.52 billion under the benevolent fund, both of which remain unsettled.

Despite these liabilities, Pakistan Railways reported revenue generation of Rs93 billion during the previous fiscal year, while also receiving government support amounting to Rs64 billion in grants.

The disclosures have raised questions about the sustainability of the department’s finances and the delay in disbursing mandatory employee benefits.