The federal budget 2026-27 has raised the public transport subsidy for Rawalpindi and Islamabad to Rs 7,300 million, up from Rs 3,000 million allocated in the previous financial year, representing an increase of more than 143 percent in a single budget cycle. The increased subsidy will cover both the Metro Bus Service and the Green Electric Bus Service, improving access to affordable and modern transport options for residents of both cities.
The Metro Bus Service connecting Rawalpindi and Islamabad has been operating successfully since 2014, with hundreds of thousands of passengers using the service on a daily basis. The service has become a critical component of the twin cities’ public transport infrastructure, providing a fixed-route, high-frequency corridor that allows commuters to move between the two cities without relying on private vehicles or informal transport. The subsidy increase ensures that the Metro Bus Service can continue operating at affordable fares for its large daily ridership base while also funding the expansion of the newer Green Electric Bus network alongside it.
Officials have confirmed that 20 additional sectors and routes in the twin cities are included in the new financial year’s plan for the expansion of Green Electric Bus operations. Rawalpindi Division already has public transport running across 23 routes, with 20 more routes earmarked for the phased introduction of Green Electric Buses in the coming months. The government has stated that the number of Green Electric Buses will be increased gradually to modernise the public transport network and provide residents with improved urban travel facilities. The addition of 20 new routes represents a near-doubling of the current Rawalpindi Division public transport network, significantly extending the geographic coverage of green public transport across the twin cities region.
The Punjab government is also considering allocating a separate transport subsidy for Rawalpindi Division in its own budget to further strengthen the region’s public transport infrastructure. If the Punjab government proceeds with a dedicated provincial allocation for Rawalpindi Division, it would create a dual-funding model combining federal and provincial resources to accelerate the expansion of the Green Electric Bus network at a pace that would not be achievable through federal subsidy alone. The budget commitment to both the Metro Bus Service and the Green Electric Bus Service, coming at a time when the government is also pursuing zero customs duty on electric buses and the Pakistan Accelerated Vehicle Electrification programme, reflects a consistent policy direction toward transitioning Pakistan’s urban transport network away from fossil fuel dependence through a combination of direct subsidies, infrastructure investment, and fiscal incentives for electric vehicle adoption.
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