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New Toll Tax Announced for Islamabad Lahore (M2) Motorway

5 min read
Legal Expert
New Toll Tax Announced for Islamabad Lahore (M2) Motorway
The National Highway Authority (NHA) has announced new toll tax rates for the Lahore, Islamabad Motorway (M2), which will take effect from August 26, 2025, and remain in force until August 25, 2026. As per the revised schedule, Cars, Jeeps, and Taxis (Class 1) will be charged Rs. 1,330, calculated at Rs. 3.72 per kilometer. Wagons (Class 2) will now pay Rs. 2,240 (Rs. 6.24/km), while Buses will be charged Rs. 3,130 (Rs. 8.73/km). According to an official notification issued on Monday, the annual 10% increase in toll rates is in line with the concession agreement signed on April 23, 2014, with Motorway Operations and Rehabilitation Engineering (Private) Limited, a subsidiary of the Frontier Works Organization (FWO). The Build-Operate-Transfer (BOT) agreement mandates this annual adjustment starting from the second operational year.
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Written by the expert legal team at Javid Law Associates. Our team specializes in corporate law, tax compliance, and business registration services across Pakistan.

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