The National Highways Authority (NHA) aims to achieve triple-digit revenue this fiscal year, a significant increase compared to the approximately Rs 60,000 million collected last year, Daily Times has reliably learned.
According to available information, the NHA generates revenue through various streams. Among these, toll collection from motorways and highways across the country remains one of the primary sources of income for the authority.
To achieve the targeted income of Rs 102,956 million for the fiscal year 2024-25, the NHA has announced yet another increase in toll taxes on various routes, effective from Monday (January 05).
An official, speaking to this correspondent wished not to be named, stated that the decision was made as there was no viable alternative to bridge the financial gap. He added that boosting revenue is crucial for maintaining the authority’s financial stability. “The top management, including the chairman and the minister for communications, is determined to enhance revenue,” he noted.
The key routes where the toll hikes are supposed to be implemented are included as Islamabad-Peshawar Motorway (M-1), Lahore-Abdul Hakeem Motorway (M-3), Pindi Bhattian-Faisalabad-Multan Motorway (M-4), Multan-Sukkur Motorway (M-5), D.I Khan-Hakla Motorway (M-14) and the Mansehra Expressway.
Under the revised rates, cars travelling on the Islamabad-Peshawar Motorway (M-1) will see their toll rise from Rs 460 to Rs 500. Wagons will now be charged Rs 750, up from Rs 720 while buses face an increase from Rs 1,300 to Rs1,450. For trucks, the toll tax will jump from Rs1, 950 to Rs2300.
On national highways, the toll for cars will increase from Rs 50 to Rs 60, wagons will be charged Rs100, and buses will face a new rate of Rs200 against previous rates of Rs170. For 2 and 3-axle trucks, the tax will be Rs250 while articulated trucks will be charged Rs 500 against Rs 460.
On the M-3 motorway from Lahore to Abdul Hakeem, the toll tax for cars has risen from Rs650 to Rs 700. For the M-4 motorway, the toll tax has been raised from Rs850 to Rs950 while on M-5it was raised from Rs1, 050 to Rs1, 100. On the M-14, the toll tax is now Rs 600. In addition, tolls have been raised at key locations such as the Kohat Tunnel (N-55), Islamabad-Murree-Kohala Highway (N-75), and Mianwali Toll Plaza (N-135) with commuters facing higher charges across the board.
Earlier, the NHA authorities submitted some details to the National Assembly Standing committee on Communications. According to which the throw-forward of the authority has accumulated to Rs 2,226 billion. Such lower allocation results in accumulating huge backlog in the shape of throw forward and piling up of loans for the organization which also hampers projects’ execution and cost escalation.
Besides toll rates’ enhancement, as per documents, the authority also had set target to enhance its revenue by earning Rs 24,882 million per year through rationalization of toll rates. The establishment of 55 new toll plazas also under plan by which the authority would generate estimated revenue of Rs 4,330 million every year.
Although the NHA’s annual revenue has significantly increased over the last five years, the department still faces a financial discrepancy of millions, with a large gap between its earnings and expenditures. Documents reveal that the authority’s revenue has nearly doubled, from Rs 32,394 million in 2018-19 to Rs 64,000 million in 2023-24. In five years, NHA has mount up money from various sources such as Rs 178,894 million from toll income, Rs 37291 million from police fine, Rs 6,197 million from weigh income. Moreover, the authority has collected Rs 23,734 through different type as fee against issuance of different NOCs and as rental charges. It has earned Rs 61,589 million from bank profit and auction in said span of five years.
A senior official privy to financial affairs of the NHA recalled that some irregularities were practiced in toll collection by some staff members. “Some senior authorities including Federal Minister for Communications Minister Abdul Aleem Khan of the view that handing over the toll collection to the private sector in those areas where there were problems in revenue collection were exist can be a solution for ensuring transparency in this process,” he revealed.