Induction of New Buses

The Transport Department is committed to provision of decent, efficient, affordable, safe and environment friendly public transport in the province. For the metropolitan city of Lahore, the Lahore Transport Company (LTC) has been established. LTC is mandated to improve and develop public transport infrastructure, including induction of new buses on urban routes.

The private sector is reluctant to invest on account of fuel price hike and parasite transport that makes the urban bus operation financially non-viable. To encourage the private operators to induct new urban buses, the Government provides Capital upfront and operational subsidies. Under this scheme 194 new CNG/diesel buses (161 CNG & 33 diesel ) have been inducted in Lahore.

Capital Upfront Subsidy

  • PKR 1 Million per bus (Diesel Buses)
  • PKR 1.125 Million per bus (CNG buses)

Operational Subsidy

  • PKR 1250/bus per day after installation of trackers and third party validation of kilometers covered

New CNG AC Buses

The incentive package under this special initiative of the Punjab Government is as under:
  • 20% capital upfront subsidy by the Government
  • 20% operator’s equity
  • 60% loan through BOP recoverable in 5 years
  • 20% return on equity (Operational Subsidy)
  • Parking places/bus depots subject to availability
The Transport Department/LTC after a competitive bidding process has signed an agreement for the purchase of 575 CNG AC buses to ply in major cities of the Punjab through private operators. The agreement concludes:
  • 350 buses: 221 buses allocated to Lahore and 129 to other major cities
  • 125 buses have started operation