The Lahore-Islamabad Motorway (M2) toll tariff has been increased by 10%, with the new rates effective Aug. 26.
The decision, announced by the National Highways Authority (NHA), followed the execution of a concession agreement with M/s Motorway Operations and Rehabilitation Engineering (Private) Limited.
This subsidiary, owned by the Frontier Works Organisation (FWO), formalized a long-term agreement for the enhancement of the Lahore-Islamabad Motorway (M-2) under the Build-Operate-Transfer (BOT) framework.
The accord, established on April 23, 2014, outlines a two-decade plan for modernizing and overlaying the M-2. As stipulated in the concession agreement, a 10 percent escalation in toll rates was agreed upon from the second operational year onwards. Consequently, from August 26th, 2023, to August 25th, 2024, the revised toll rates will be implemented.
New toll rates
The National Highways Authority provided official notice detailing the adjusted toll rates as follows:
- Car/Jeep/Pickup: Rs1,100, approximately Rs3.07 per km
- Van: Rs1,840, approximately Rs5.15 per km
- Coaster: Rs2,590, approximately Rs7.22 per km
- Coach: Rs3,690, approximately Rs10.29 per km
- Truck: Rs4,800, approximately Rs13.39 per km
- Trailer: Rs6,170, approximately Rs17.22 per km
This decision to increase toll rates by 10 percent aligns with the broader economic trends in Pakistan, where various goods and services have experienced noticeable price increments.
NHA collected highest toll tax in FY 2021-22
In the fiscal year 2021-22, the National Highways Authority (NHA) achieved an unprecedented milestone by collecting a total toll tax amounting to Rs35.063 billion. This amount comprised Rs21.776 billion from national highways and Rs13.287 billion from motorways.
According to official documentation, the accumulated toll tax collection from toll plazas on Motorways and National Highways over the past five years reached a significant sum of Rs134.32 billion. Out of this, Rs99.35 billion was sourced from toll tax on national highways, while Rs34.967 billion was derived from motorways.
Sources revealed that the revenue generated from toll tax plays a pivotal role in financing maintenance endeavours. However, the extensive road network spread across the nation poses a challenge for the NHA in comprehensively covering maintenance due to insufficient funds.
