National Highway Authority Raises M-2 Motorway Toll by 7 Percent
The National Highway Authority (NHA) has implemented a 7 percent toll tax increase on the Islamabad-Lahore Motorway (M-2). This revised toll rate, effective until April 23, 2027, was announced in a notification issued on Saturday. The increase is in accordance with a concession agreement between the NHA and Motorway Operations and Rehabilitation Engineering (Private) Limited (MORE), a subsidiary of Frontier Works Organisation (FWO). MORE is tasked with the rehabilitation and modernization of the M-2 Motorway. The new toll rates for various vehicle types include Rs1,430 for cars, jeeps, and taxis; Rs2,390 for wagons; Rs3,350 for coasters; Rs4,770 for buses; Rs6,210 for two- and three-axle trucks; and Rs7,980 for articulated trucks. These adjustments are based on a per-kilometer charge. This development follows an Islamabad High Court (IHC) ruling on Friday, which suspended a previous NHA notification imposing an additional 50 percent toll on vehicles without an M-Tag or with insufficient M-Tag balances.
The NHA's decision to increase M-2 motorway tolls aligns with standard practices for infrastructure maintenance and debt servicing, often stipulated in concession agreements. Such increases are typically designed to keep pace with inflation and fund ongoing operational costs and capital improvements. The timing of this hike, shortly after the Islamabad High Court's suspension of a separate M-Tag related surcharge, may suggest a need for NHA to ensure revenue targets are met through established mechanisms. Future considerations for motorway financing could involve exploring diversified revenue streams or optimizing operational efficiencies to mitigate the impact of frequent toll adjustments on users, particularly in light of evolving transportation technologies and user payment preferences.
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