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The Capital Development Authority (CDA) Chairman and Islamabad Chief Commissioner, Muhammad Ali Randhawa, has announced a major digital shift. A mandatory M-Tag system will now apply to all vehicles entering the federal capital. The city will also implement a digital parking and cashless payment system through QR code payments.
This decision was made during a high-level meeting at CDA Headquarters on Wednesday. It was attended by CDA board members, director generals, the deputy commissioner, excise and taxation officers, and other senior ICT officials. Under the new directive, every vehicle entering Islamabad must have an M-Tag, an electronic identification tag. Vehicles without it will be denied entry.
In addition to M-Tags, a citywide digital parking system will be launched, starting with commercial and high-traffic zones. Smart parking meters will be installed with location-based variable pricing; busy areas will cost more, encouraging efficient space usage.
Citizens will soon book and pay for parking through a mobile app or QR code. This will eliminate cash handling and manual processes. The new model aims to minimize illegal parking and reduce the frustration of finding spots in busy zones.
As previously reported by TechJuice, Islamabad’s digital parking system has already faced serious transparency concerns. The project, outsourced to a private firm, was linked to allegations of embezzlement and irregular tendering. An FIR was filed, and MCI launched a formal investigation. Despite promises of a fully digital setup, only limited infrastructure was reportedly deployed. {Read More}
Concerns Over Payment with M-Tags
Many citizens have raised concerns about why M-Tags remain the only option for vehicle entry in Islamabad. Managed by One Network under the National Highway Authority (NHA), M-Tags were initially introduced for toll payments on motorways and later extended to urban applications.
Although users can recharge their M-Tags through various digital platforms like Zindigi, NayaPay, Askari Bank, JazzCash, EasyPaisa, and debit/credit cards, all transactions are funneled through the centralized M-Tag system. This structure limits users from paying independently through any wallet or bank of their choice without being tied to One Network’s backend.
Public feedback also points to interoperability issues and slow customer support, further fueling dissatisfaction. As a result, the lack of diverse payment options and reliance on a single private infrastructure raise valid concerns about transparency, accessibility, and user convenience.
Key Public Questions:
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Where will digital parking be available in Islamabad?
So far, the system has been installed at major sites such as Centaurus Mall, Daman-e-Koh, Rawal Dam Park, F‑7 Markaz, and Blue Area parking plaza, though full deployment remains ongoing. -
What about previously free parking zones? Will they now charge fees?
Yes. Free parking in G-8 Markaz was provided briefly during the trial awareness. Afterwards, fees were applied to all designated digital zones. -
Can users pay with any e-wallet or bank?
Multiple digital payment methods are supported, including credit/debit cards, QR codes, mobile apps, and scratch cards. Independent wallet or bank payment integration remains unavailable. -
Are there allegations of financial mismanagement or corruption?
Yes. The Metropolitan Corporation Islamabad (MCI) launched an inquiry, and an FIR was filed after allegations of revenue underreporting, faulty equipment installation, and irregular tendering surfaced. -
Was the e-parking contractor removed?
Yes. In June 2025, DMA and MCI terminated the contract with AJCL due to repeated breach of contract and financial irregularities. A local court later upheld the termination. -
What happened after termination? Did the system revert?
Surprisingly, the CDA reverted to the manual “perchi” ticketing method at several key parking sites, despite earlier digital implementations.
Company’s Viewpoint
AJCL (Pvt) Ltd, the contractor behind Islamabad’s digital parking project, has denied all allegations of irregularities and poor performance. The firm stated that the project was launched in April 2024 after fulfilling all legal and procedural requirements under the PPRA rules. AJCL said it invested over Rs160 million in equipment, software, and deployment, but faced operational hurdles due to CDA’s failure to provide necessary infrastructure like electricity connections.
The company termed the June 2025 contract termination as unlawful and claimed the CDA’s return to the manual “perchi” system lacks transparency and revenue tracking. AJCL has taken the matter to court, calling the corruption accusations baseless while expressing readiness to resolve the issue through arbitration.
