The federal government has announced a major increase in subsidies for public transport services in Rawalpindi and Islamabad under the Budget 2026-27, aiming to improve affordable and environmentally friendly travel options for commuters.

According to budget documents, the subsidy allocated for public transport in the twin cities has been raised from Rs 3 billion in the previous fiscal year to Rs 7.30 billion for the upcoming financial year.

The additional funding will support both the Metro Bus Service and the expanding Green Electric Bus network, which are used daily by thousands of commuters travelling between Rawalpindi and Islamabad.

Officials said the increased subsidy is intended to improve service quality, maintain affordable fares, and expand transport coverage to underserved areas.

The Metro Bus Service, launched in 2014, remains one of the most widely used public transport systems in the region, connecting key areas of the twin cities through dedicated bus corridors.

Under the new budget plan, the government has also proposed extending green electric bus services to 20 additional sectors and routes across Rawalpindi and Islamabad.

Authorities said public transport has already been introduced on 23 routes across Rawalpindi Division, while electric buses on another 20 routes will be rolled out in phases during the next fiscal year.

The government plans to gradually increase the number of electric buses to promote sustainable urban mobility and reduce carbon emissions.

Meanwhile, the Punjab government is also considering allocating a separate transport subsidy for Rawalpindi Division to further strengthen the region's public transport infrastructure.