New toll tax rates applied on M-2 Motorway

New toll tax rates applied on M-2 Motorway

LAHORE: Travel on the Islamabad Motorway (M-2) has now become more expensive. The National Highways Authority (NHA) has announced the latest toll tax rates, saying that these rates have been implemented from August 26, 2025, today and will remain in effect for the next one year, i.e. until August 25, 2026.

According to the new rates, car, jeep and taxi passengers will now have to pay Rs 1,330. The tax for wagons has increased to Rs 2,240, while for buses this amount has been fixed at Rs 3,130. These rates per kilometer are Rs 3.72, Rs 6.24 and Rs 8.73, respectively.

ClassVehicle TypeToll (PKR)Per km (PKR)
Class 1Car / Jeep / Taxi1,3303.72
Class 2Wagon2,2406.24
Class 3Bus3,1308.73
Note: Rates effective from 26 August 2025 to 25 August 2026. Increase based on annual 10% concession agreement (signed April 2014).

The NHA says that this increase is not the result of any hasty or unexpected decision but was mandatory under the 2014 concession agreement. The agreement, signed under the BOT (Build, Operate and Transfer) model, stipulated that the toll tax would be increased by 10 percent every year from the second year of the motorway, to ensure the maintenance and financial sustainability of the project.

While this continuous increase in toll tax has provided the government with resources for infrastructure maintenance, it has also increased the financial burden on ordinary passengers, who travel on the M-2 daily.

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