Overview
The National Highway Authority (NHA) has increased toll tax rates on the Lahore–Islamabad Motorway (M-2). Under a 10% annual hike clause of a Build–Operate–Transfer (BOT) agreement signed in 2014 with Motorway Operations and Rehabilitation Engineering (Pvt.) Ltd., a subsidiary of the Frontier Works Organization (FWO).
As part of this revision, toll for Articulated Trucks (Class 6) has reached Rs. 7,460 which is the highest among all vehicle categories, while cars, wagons, buses and other trucks also face increased rates.
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Validity
- Effective start date: August 26, 2025
- Valid until: August 25, 2026
- Duration: 1 year
- Next revision: Expected on August 26, 2026, as per the BOT agreement’s annual increase clause
New Toll Taxes
Vehicle Type | Class | New Toll (Rs) | ~Rate per km (Rs) |
---|---|---|---|
Cars, Jeeps, Taxis | 1 | 1,330 | 3.72 |
Wagons | 2 | 2,240 | 6.24 |
Buses | 3 | 3,130 | 8.73 |
2-Axle Trucks | 4 | 4,460 | ~12.45 |
3-Axle Trucks | 5 | 5,800 | 16.20 |
Articulated Trucks | 6 | 7,460 | 20.83 |

Reason
The reason for the M-2 Motorway toll tax increase is:
- BOT Agreement Clause – A 10% annual increase was agreed in the Build–Operate–Transfer (BOT) concession contract signed in 2014.
- Revenue for Operations & Maintenance – The hike ensures funds for maintenance, rehabilitation, and operational costs of the motorway.
- FWO Subsidiary’s Role – Motorway Operations & Rehabilitation Engineering (Pvt.) Ltd., a subsidiary of FWO, operates the M-2 and collects tolls under the agreement.
- NHA Oversight – The National Highway Authority (NHA) enforces this increase as the regulatory authority.
Final Verdict
The recent M-2 Motorway toll tax hike, enforced by the NHA has drawn mixed reactions: authorities justify the 10% annual increase as essential for maintenance and safety, while drivers, especially truckers and bus operators criticize it as unaffordable. They fear it will raise freight charges and passenger fares. Car users see it as burdensome but somewhat manageable and the general public largely perceives it as an added financial strain in tough economic times.