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Islamabad Introduces Mandatory M-Tags, Digital Parking and Cashless Payment Systems

  • July 23, 2025
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Chairman Capital Development Authority and Chief Commissioner Islamabad, Muhammad Ali Randhawa, has announced the implementation of a mandatory M-Tag system for all vehicles entering the capital, as part of a broader shift towards digital urban management. The announcement came during a high-level meeting at CDA Headquarters, which was attended by CDA Board members, Director Generals, Deputy Commissioner Islamabad, Excise and Taxation Officers, ICT officials, and other senior personnel.

The new policy mandates the use of M-Tags—electronic vehicle identification tags—for all cars entering Islamabad. Vehicles without M-Tags will be denied entry, making the system compulsory for intercity movement. The initiative is designed to streamline traffic management, improve surveillance, and enhance digital monitoring of vehicle movement in and out of the capital.

Simultaneously, Islamabad will introduce a comprehensive digital parking solution across key commercial and high-traffic zones. Smart parking meters will be installed, and pricing will vary based on congestion levels in different areas. The system will allow citizens to reserve and pay for parking through a mobile app or by scanning a QR code, eliminating the need for cash transactions and manual parking slips.

Chairman Randhawa explained that Islamabad has already initiated the shift to digital parking, aiming to reduce traffic congestion, optimize urban mobility, and save time for commuters. By facilitating real-time parking reservations and cashless payments, the CDA expects to significantly curb illegal parking and ease the process of finding available spots in busy districts.

The One Window Facilitation Center of CDA is also undergoing a digital overhaul. In addition to parking fees, residents will soon be able to use digital platforms to pay for utility bills, property dues, and other civic services. These transactions will be enabled via mobile apps, bank cards, or QR-based payment systems.

Authorities believe that this integration of M-Tags, digital parking, and cashless services will not only address persistent parking challenges but also contribute to broader urban security and city planning goals. Improved data collection from vehicle tracking and payment systems is expected to support law enforcement and traffic regulation efforts.

Randhawa directed relevant departments to conduct daily surveys monitoring vehicle inflow and outflow, allowing the city to refine its systems based on real-time usage patterns. He also emphasized that the rollout will be phased, ensuring citizens have time to understand and adopt the new technology. Awareness campaigns are being planned to educate the public on how to use the mobile apps and engage with the new digital services.

These steps are part of Islamabad’s broader transformation into a tech-enabled smart city, enhancing not only civic convenience but also the capital’s digital infrastructure and governance.

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Related Topics
  • cashless payments
  • CDA smart city
  • Digital Pakistan
  • digital parking Islamabad
  • ICT cashless system
  • Islamabad M-Tag
  • Muhammad Ali Randhawa
  • smart parking meters
  • urban mobility Islamabad
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