Govt withdraws increase in toll taxes on highways; Pakistan Railways to keep fares unchanged

ISLAMABAD: The government on Thursday withdrew 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.

According to state-run APP, 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.

A notification by the NHA to this effect was also shared by the communications ministry on the social media platform X.

On March 24, APP had reported that the NHA had announced an increase in toll tax on national highways and motorways, which were to take effect from April 1. According to the official notification, under the new toll structure, charges for cars on national highways were to be Rs 70, while vans would be charged Rs 150 and buses Rs 250. Two- and three-axle trucks would face a toll of Rs 300, and larger trucks would be charged Rs 550.

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 10 km along the motorway to further modernise the travel experience and stimulate local trade.

​During the session, 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.

The minister 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.

Meanwhile, state-run Radio Pakistan 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.