Govt withdraws increase in toll tax on highways

Published April 4, 2026
A METRO train glides along an elevated track in Lahore. State-run public transport in Islamabad and Punjab will be free for the coming month.—AFP
A METRO train glides along an elevated track in Lahore. State-run public transport in Islamabad and Punjab will be free for the coming month.—AFP

ISLAMABAD: The government has withdrawn the increase in toll taxes, freezing all adjustments for the current fiscal year, while Prime Minister Shehbaz Sharif directed the Pakistan Railways not to increase fares for any class.

The decision regarding toll taxes was taken in a high-level review meeting of the National Highway Authority (NHA), chaired by Minister for Communications Abdul Aleem Khan, to align national infrastructure goals with immediate public relief.

“Acting on the special directives of Prime Minister Shehbaz Sharif, the minister used the session to officially rescind the 25 per cent quarterly increase in toll taxes, freezing all adjustments for the 2025-26 fiscal year,” it said.

The minister directed the NHA to withdraw its notification issued on April 1 and halt the increase that was scheduled to take effect from April 5.

NHA directed to cancel April 1 notification; Railways directed to keep fares unchanged

During the briefing on Friday, the communication minister also outlined the government’s long-term vision, declaring the Karachi Port-Hyderabad M-10 Motorway as the “economic lifeline” of the country.

The minister emphasised that the M-10 will be an expansive 8-lane project, essential for stren­gthening port connectivity and decongesting urban heavy traffic.

He directed the NHA to immediately engage international consultants and top-tier engineers for feasibility studies and preliminary work to ensure the highest standards, the handout said.

The project will include modern rest areas and shopping facilities developed every 10km along the motorway to further modernise the travel experience and stimulate local trade.

During the session, Mr Khan dismissed claims of the NHA’s financial instability as a “misleading na­­r­­rative”, asserting that the au­­th­o­rity was strictly focused on sustainable and high-standard projects.

The meeting also highlighted significant international support, noting that the OPEC Fund for International Development recent­­ly approved a $230 million loan for Section 3 of the Hyderabad-Sukkur Motorway.

Mr Khan concluded by stressing that all resources must be utili­sed transparently to complete the M-10 project within a projected two-year timeframe, ensuring maxi­mum benefit for the common citizen.

Railway fares

Meanwhile, the state-run radio reported that PM Shehbaz had dir­ected the Pakistan Railways (PR) not to increase fares for any class.

Citing a press release issued by the PR, the state broadcaster’s re­­p­ort said no fares would be incre­ased, including those for economy and air-conditioned classes.

Similarly, freight train charges would also remain unchanged to facilitate the business community, it added.

“On the prime minister’s directive, the government would

bear an additional burden of Rs6 billion until June 30 this year,” the report said.

Published in Dawn, April 4th, 2026

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