115,000 Pakistan Railways (PR) retirees who have not been verified have been getting annual pensions totaling Rs. 35 billion, according to research by the government-funded Pakistan Institute of Development Economics (PIDE), a think tank housed under the Planning Commission.
It revealed in a statement Tuesday that between 2015 and 2020, Pakistan Railways lost Rs. 144 billion. A Rs. 44 billion shortfall in 2020, which includes Rs. 36 billion for the pensions of 120,000 PR employees, is included in the losses.
According to the PIDE analysis, the PR also received a subsidy from the government in 2020 of Rs. 45 billion to make up for these losses.
Due to the intense competition from the road transportation industry and PR’s inability to implement a customer-centric business strategy due to a complicated bureaucratic structure, the public agency has been inefficient, underfunded, and overstaffed for the past 35 years, making losses.
According to the study, “there are 115,000 unconfirmed retirees of PR who are paid Rs. 35 billion annually.”
To fix the problem, a biometric verification mechanism to confirm the pensioners in question has been proposed.
A Pay and Pension Commission (PPC) has also been established in this regard, and it will take into account issues pertaining to the railways and other public companies.
Being one of the top 10 loss-making state-owned businesses in the nation, PR was also the subject of the PIDE report’s revolutionary institutional reform recommendations. Additionally, it may be possible to rephrase its losses so that every employee can see them.