Experts have warned that a new provision in Punjab amended Motor Vehicles Ordinance could impose heavy financial and administrative burdens on app-based ride-hailing drivers, even as the province moves to formally regulate the sector for the first time.
Business Recorder reported that Punjab has updated the Motor Vehicles Ordinance of 1965 to bring app-based ride-hailing services under a formal regulatory framework, a move experts described as necessary given that the original law could not have anticipated smartphone-based dispatch or platform work.
However, they said the newly added Section 44B places a disproportionate share of compliance costs on drivers rather than platforms.
Under the section, drivers are required to obtain route permits that are both district-specific and platform-specific. Experts said this framework does not reflect how urban mobility actually works, since trips frequently cross district boundaries and drivers often use multiple apps to sustain income.
As a result, a vehicle could be classified as operating without a valid permit the moment it crosses a district line, creating what experts called an unenforceable compliance regime across the more than 30 districts of the province.
They added that applying for permits at multiple Regional Transport Authority offices and paying recurring renewal fees would strain drivers already affected by inflation and fuel-price volatility, potentially pushing smaller or independent drivers out of the formal sector entirely.
As an alternative, experts proposed a single, province-wide permit model that would maintain regulatory oversight and accountability while reducing administrative burden on drivers. They said such a model could serve as a template for other provinces considering similar reforms.
