The National Highway Authority (NHA) has announced revised toll rates for the Lahore–Islamabad Motorway (M2), with the new charges taking effect on August 26, 2025. These rates will remain in force for a year, until August 25, 2026.
This increase follows the annual adjustment mechanism built into the Build-Operate-Transfer (BOT) contract signed with the Frontier Works Organization’s (FWO) subsidiary, Motorway Operations and Rehabilitation Engineering (Pvt.) Ltd.
Why Drivers Will Be Paying More
The toll hike is not arbitrary; it’s a contractual requirement. According to the agreement inked on April 23, 2014, toll charges are subject to a 10% annual escalation starting from the motorway’s second operational year.
Officials say this ensures consistent funding for the upkeep of the M2, Pakistan’s busiest expressway, which connects the provincial and federal capitals. The arrangement allows the operator to recover its investment while maintaining road quality and safety standards.
New Toll Rates by Vehicle Category
Here’s what motorists will be paying from next week:
| Vehicle Type | Toll (PKR) | Approx. Rate per km |
|---|---|---|
| Cars, Jeeps, Taxis (Class 1) | 1,330 | Rs3.72/km |
| Wagons (Class 2) | 2,240 | Rs6.24/km |
| Buses | 3,130 | Rs8.73/km |
| 2-Axle Trucks (Class 4) | 4,460 | Rs12.45/km |
| 3-Axle Trucks (Class 5) | 5,800 | Rs16.20/km |
| Articulated Trucks (Class 6) | 7,460 | Rs20.83/km |
Context: More Than Just a Price Hike
While regular commuters may feel the pinch, this toll increase reflects Pakistan’s growing reliance on public-private partnerships (PPPs) to finance infrastructure. By allowing annual price adjustments, the NHA avoids the budgetary strain of maintaining the motorway entirely through taxpayer money, shifting some costs to frequent users.
However, transporters are likely to pass on these costs to goods and passenger fares, meaning the hike could ripple into inflationary pressures—particularly in supply chains between Lahore and Islamabad.
