NHA Toll Tax Hike July 2026: New M-2 Motorway Rates, What’s Changing, and How to Pay Less

The National Highway Authority has raised Lahore-Islamabad motorway tolls by 7% from Rs 1,330 to Rs 1,430 for cars — and up to Rs 7,980 for articulated trucks. Here are the exact new rates per motorway, the April 5 status on national highways, and what the PM’s earlier withdrawal means for truckers and daily commuters.

Life in Pakistan Editorial Desk · July 5, 2026 · Updated with M-2 figures and the April PM rollback context

Two toll-tax actions have collided in the past three months, and together they have quietly reshaped the cost of moving people and goods across Pakistan. First, the National Highway Authority (NHA) hiked rates on national highways and several motorways effective April 5, 2026, only for Prime Minister Shehbaz Sharif to intervene days later and suspend the 25% quarterly increase on the broader highway network. Second, a separate 7% annual escalation clause on the Lahore-Islamabad M-2 motorway took effect on July 5, 2026 — and there is no suspension order for that motorway.

The practical result for daily M-2 commuters: a one-way car trip from Islamabad to Lahore now costs Rs 1,430, up Rs 100. Round-trips on trucks have pushed past Rs 12,000 for the first time. This guide breaks down every revised rate, what motorway and highway commuters need to know about exemptions, and how the political fight over the April 5 hike will affect the rest of 2026.

The two recent NHA toll actions explained

April 5, 2026: the wider hike that got rolled back

On April 1, the NHA announced a sweeping toll revision covering most national highways and motorways — a 25% quarterly increase that would have touched every vehicle class, from cars to 22-wheeler articulated trucks. The new rates were scheduled for April 5, 2026. Three days later, on April 3, Federal Minister for Communications Abdul Aleem Khan, acting on directives from Prime Minister Shehbaz Sharif, formally rescinded the notification and ordered the NHA to halt any new charges for the remainder of fiscal year 2025-26.

The Ministry’s statement was unusually blunt: “Under the current circumstances, an additional burden cannot be imposed on citizens.” For all national highways except the M-2 motorway contract, and for all motorways other than M-2, the rates in force before April 1 remain in place.

July 5, 2026: the M-2 escalation that is locked in

The M-2 between Lahore and Islamabad is operated under a 2014 Build-Operate-Transfer (BOT) concession agreement between the NHA and Motorway Operations and Rehabilitation Engineering (Private) Limited — a subsidiary of the Frontier Works Organization (FWO). That contract includes a contractual annual escalation clause of 10%, indexed to a different baseline than quarterly administrative hikes. After the PM’s directive, the NHA applied a smaller 7% increase on M-2 to keep the rate at the lower end of the contractual envelope.

The new M-2 rates are effective from July 5, 2026, until April 23, 2027, when the next annual adjustment kicks in.

New M-2 motorway toll rates effective July 5, 2026

The percentage increase is identical across categories (7%), but in absolute rupees, the heaviest vehicles carry the biggest extra charge — a Rs 520 jump for one trip on an articulated truck. Drivers making two M-2 round-trips a week now spend Rs 1,040 more per week, or Rs 4,160 more per month, just on tolls.

M-1, M-3, M-4, M-5 — what is and isn’t changing

The PM-ordered suspension of the April 5 hike keeps the April 1 rates locked in for most motorways. So if you travel on any of the routes below, the prices have not moved since early April 2026.

Note that M-5 to Sukkur remains the most expensive car route in the country at Rs 1,500 one way, and M-5 is now the only motorway whose articulated-truck rate (Rs 7,150) is within Rs 200 of the new M-2 rate.

Why M-2 alone went up — the BOT concession contract

M-2 is operated and maintained under a 25-year Build-Operate-Transfer agreement signed April 23, 2014, between the NHA and MORE — a private subsidiary of the FWO. The contract specifies an annual toll escalation tied to a fixed percentage rather than the discretionary quarterly mechanism used by the NHA on other roads.

That technical distinction is the reason the PM-ordered April rollback did not extend to M-2. The annual escalation on M-2 is contractual and cannot be unilaterally withdrawn by the federal government without triggering a default claim from MORE. Officials briefed reporters the 7% was deliberately set at the lower end of the contractual envelope to balance the operator’s rights with public sentiment — a 10% increase would have lifted the car toll to Rs 1,460.

What the concessionaire does with the money

Under the BOT, MORE collects tolls on M-2, retains an agreed share to cover operations, maintenance, and debt service on the original construction financing, and remits the balance to the NHA. Periodic audits by the Auditor General of Pakistan verify the share remitted. Transparency has historically lagged comparable concessions in Malaysia and Indonesia — a frequent gripe of truckers’ associations along the M-2 corridor.

Who is exempt from the new tolls?

• Ambulances on emergency calls — free passage on all NHA roads.
• Funeral processions — free passage on all motorways.
• Police and military convoys on official duty — verified at the toll gate.
• Disabled persons with vehicle-specific exemption stickers from the NHA — apply through the District Commissioner’s office.
• Press vehicles carrying journalists with valid PIB/NHA accreditation.
• Public service vehicles on dedicated intercity routes contracted to provincial governments — only with valid route permits.

All other vehicles, including ride-hailing cars (Careem, Uber, Bykea etc.) and rented cars, pay full tolls. Commercial freight on dedicated lanes has no exemption.

Will there be another hike before year-end?

Probably not until April 2027. The next contractual M-2 escalation will fall on April 23, 2027. The next discretionary quarterly increase on national highways and other motorways was also paused. The government has not signalled any new mid-year adjustment, and political sensitivity around transport costs remains elevated ahead of the fiscal year close.

What it means for your wallet

If you drive a sedan between Islamabad and Lahore once a week, you now spend roughly Rs 1,720 more a month on M-2 tolls (8 trips × Rs 215 extra round-trip) — about the price of one mid-range lunch per round-trip. Family road trips during Eid and summer holidays on the M-2 will absorb an extra Rs 1,000-1,500 per round-trip when both directions are added up.

For trucking companies running M-2 freight lanes, the impact is larger: a fleet of 10 trucks making two weekly one-way trips faces an extra Rs 7,800 a week, or Rs 31,200 a month, on toll costs alone. Most carriers are expected to pass the increase through to shippers and consumers, partly offsetting the headline relief on petroleum prices elsewhere.

“A 7% increase that sounds small becomes significant when you multiply it across millions of weekly M-2 trips — and when you remember that the AVERAGE articulated truck will now pay Rs 7,980 for one direction.”

How to pay less on the M-2

1. Use M-TAG and get a 5% discount on every M-2 trip. The tag costs Rs 200 to obtain and is rechargeable via JazzCash, EasyPaisa, and bank cards.
2. Travel off-peak (10 PM – 5 AM) where congestion charges are waived at some plazas.
3. Use M-3 + N-5 (the older GT Road) for one direction on round-trips where time permits, especially truck-only convoys. National highway rates remain lower.
4. Car-pool with two or more vehicles to claim HOV discounts where your entry plaza supports them (currently two entry plazas on M-2).
5. For businesses: claim toll as a deductible business expense against turnover tax and income tax.

Frequently asked questions