Govt monopoly on vehicle number plates ends

The Punjab Excise Department has taken steps to overhaul the issuance of computerised number plates for vehicles, including a shift away from the government’s monopoly towards an open competition in the manufacturing and distribution of the essential identifiers.

According to officials, the decision comes after years of public grievances and administrative challenges.

Despite collection of fees from approximately three million vehicle owners in the province over the past three years, many had been left waiting for their number plates to be issued.

Recognising the need for reform, the provincial cabinet has approved the abolition of the government’s monopoly on number plate manufacturing. Instead, an open licensing regime has been endorsed, allowing multiple companies and institutions to participate in the production process.

Under the new system, applicants will no longer be required to pay fees for new computerised number plates, signalling a departure from the previous practice.

The sources said the move aims to streamline the registration process and eliminate unnecessary financial burdens on vehicle and motorcycle owners.

Excise Director General Faisal Fareed has initiated the implementation of the cabinet’s decision.

A notification has been sent to Excise Secretary Masood Mukhtar, outlining the immediate cessation of fee collection for number plates with new or duplicate registration requests.

The officials said the transition to an open licensing regime is expected to foster healthy competition among private companies registered under the framework. They estimate that vehicle owners stand to save up to Rs500 on number plates compared to the current government prices.

However, challenges remain as the department grapples with the legacy of past inefficiencies. The backlog of pending number plates for millions of citizens poses a complex logistical and administrative dilemma.

The officials said previous attempts to modernise the vehicle registration system, including partnerships with federal agencies, had faced challenges and disputes over fee structures.

Published in The Express Tribune, April 1^st, 2024.