Government withdraws toll tax increase on national highways for current fiscal year

ISLAMABAD: The government has withdrawn the increase in toll taxes on national highways and frozen all adjustments for the 2025-26 fiscal year, according to details shared after a high-level review meeting of the National Highway Authority (NHA) chaired by Communications Minister Abdul Aleem Khan.

According to a statement cited by state-run APP, the move was taken on the directions of Prime Minister Shehbaz Sharif. The statement said,

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,

adding that the decision was aimed at aligning infrastructure goals with immediate public relief.

The minister directed the NHA to withdraw its notification issued on April 1 and stop the increase that had been scheduled to come into effect from April 5. The communications ministry also shared an NHA notification on social media platform X confirming the decision.

Earlier, on March 24, APP had reported that the NHA had announced revised toll rates for national highways and motorways, which were to take effect from April 1. Under that structure, toll charges for cars on national highways were to be Rs 70, while vans were to pay Rs 150 and buses Rs 250. The toll for two- and three-axle trucks was set at Rs 300, while larger trucks were to be charged Rs 550.

During the briefing, the communications minister also spoke about the government’s longer-term infrastructure plans and described the Karachi Port-Hyderabad M-10 Motorway as the

economic lifeline

of the country.

He said the M-10 would be developed as an eight-lane project intended to improve port connectivity and reduce the burden of heavy traffic in urban areas. According to the official handout, Khan instructed the NHA to immediately hire international consultants and leading engineers to begin feasibility studies and preliminary work so that the project could meet high standards.

The project, the handout said, will also feature modern rest areas and shopping facilities at intervals of every 10 kilometres along the motorway, with the stated aim of improving travel facilities and supporting local trade.

At the meeting, Khan also rejected suggestions that the NHA was facing financial instability, calling such claims a

misleading narrative

. He said the authority remained focused on sustainable and high-standard development projects.

The session further noted international financial backing for road infrastructure, including a recently approved $230 million loan from the OPEC Fund for International Development for Section 3 of the Hyderabad-Sukkur Motorway.

The minister said all available resources should be used transparently to complete the M-10 project within a projected period of two years so that it could deliver maximum benefit to the public.