Key Takeaways:
• Pakistan Goods Transporters Association announces strike in Punjab and Khyber Pakhtunkhwa from July 25
• Protest against excessive toll taxes and unjust fines
• Demands include end to highway extortion and transfer of axle load responsibility to motorway police
• Toll tax increases range from 30% to 40% for various vehicle types
Impending Strike in Key Provinces
The Pakistan Goods Transporters Association has declared its intention to go on strike in Punjab and Khyber Pakhtunkhwa starting July 25. This decision comes in response to what the association describes as ‘excessive toll taxes’ and ‘unjust fines’ imposed on transporters.
Reasons Behind the Protest
Nabeel Mahmood Tariq, president of the transporters association, highlighted two main grievances:
1. Excessive toll taxes that reportedly increase every three months
2. Exorbitant fines imposed on transporters
The association is also calling for an end to what they term as an “extortion system” on highways and the transfer of axle load responsibility to the motorway police.
Potential for Nationwide Action
While the strike is initially planned for two provinces, the association has not ruled out the possibility of expanding it to other regions if their demands are not addressed. This raises the specter of a potential nationwide strike that could severely impact goods transportation and supply chains across Pakistan.
Impact of Toll Tax Increases
Recent toll tax hikes have significantly affected the transport sector:
• Heavy vehicles: Increase from Rs250 to Rs350 on national highways (40% rise)
• M5 motorway: Increase from Rs3,280 to Rs4,500 (37% rise)
• M3 motorway (axle trucks): Increase from Rs1,550 to Rs2,100
• Buses: Increase from Rs1,200 to Rs1,600
These increases, ranging from 35% to 40%, exceed the government’s announced 30% hike, further fueling the transporters’ grievances.
Potential Economic Repercussions
The planned strike could lead to disruptions in goods transportation and supply chains in Punjab and Khyber Pakhtunkhwa. This situation may result in shortages of essential goods and potential price hikes, affecting both businesses and consumers in these regions.
