Muhammad Faisal Kaleem

National Highway Authority’s (NHA) toll income increased by 101 percent to Rs96.49 billion during the fiscal years 2023-24 and 2024-25, reports Wealth Pakistan.

The revenue was generated from the motorways and highways in Punjab, Sindh, Khyber Pakhtunkhwa (KP), and Balochistan. The income from motorways increased by 110 percent, while highway revenue rose by 94 percent. Sindh remains on the top, with 117 percent increase in toll income, followed by KP with 92 percent, Punjab 84 percent, and Balochistan 81 percent.

Sindh accumulated a total of Rs16,627.8 million, including Rs5250.04 million in 2023-24 and Rs11,377.80 million in 2024-25. There was an increase of Rs6,127.76 million in revenue. KP generated a revenue of Rs3,633.59 million, including Rs1,244.14 million in 2023-24 and Rs2,389.45 million in 2024-25. There was an increase of Rs1,145.3 million in revenue in these two years.

Likewise, Punjab generated a total of Rs30,245.2 million in revenue, including Rs10,665.14 million in 2023-24 and Rs19,580.06 million in 2024-25.  There was an increase of Rs8,914.91 million in these two years. Balochistan lagged behind the three provinces, with Rs1,681.91 million, including Rs599.54 million in 2023-24 and Rs1,082.37 million in 2024-25. The revenue increase in these two years was Rs482.82 million in 2024-25.     

The NHA collects toll revenue from the national highways and motorways. Both sources generated a total of Rs96,492.61 million in revenue during the period. The Authority collected a revenue of Rs32,068.70 million in FY2023-24, with the motorways contributing Rs14,309.92 million and highways Rs17,758.87 million.

During the Fiscal Year 2024-25, the Authority generated a total of Rs64,423.82 million in revenue, with the motorways contributing Rs29,994.14 million, and highways Rs34,429.68 million. The total revenue generated by the highways is Rs52,1188.55 million, including Rs17,758.87 million in FY2023-24, and Rs3,4429.68 million in FY2024-25.

The revenue generated by motorways across the country remained Rs44,304.06 million, including Rs14,309.92 in FY2023-24 and Rs29,994.14 in FY2024-25.  As per the data, the revenue from motorways and highways increased by 101 percent and 94 percent, respectively during the two years.

Established under the NHA Act 1991, NHA is mandated to manage, operate, and maintain the federalized road networks, financing these activities primarily through its own resources. As per the toll policy, NHA is authorized to revise toll rates every three years or as required, using the prescribed formula linked to inflation indices.

Accordingly, with the approval of the NHA executive board, the toll rates were revised twice (January 2025 and April 2025) in the years 2024 and 2025 to minimize the burden on the commuters. A senior official at the NHA confided to Wealth Pakistan that this revision is lawful and necessary to adjust the toll rates in line with the current economic conditions, and it will help ensure sustainable financing for the maintenance, rehabilitation, and safe operation of the national road network.

The NHA applies three types of toll systems on its roads, including manual toll plazas, Electronic Toll and Traffic Management (ETTM) system, and M-Tag system.  In manual toll plazas, the traffic count is conducted at the procurement stage during the last quarter of the financial year. Moreover, traffic fluctuations during the contract period remains a risk, with toll operator costs governed by contractual stipulations.

The ETTM system is a hybrid model of toll collection. In this system, a fixed guaranteed portion is calculated at the time of contract. It monitors real-time traffic count. The third one is M-Tag system, which is applicable only on the motorways.  It is an electronic toll collection system that automatically deducts toll charges from a prepaid account and then allows vehicles to pass unstopped through the toll plazas.

Credit: INP-WealthPk