Could a new law bring calm to Pakistan’s ride-hailing chaos?

Pakistan is finally moving to regulate its booming ride-hailing industry.

A new bill presented in the Senate by Pakistan People's Party (PPP) Senator Sarmad Ali proposes a legal framework for online cab services — a major step toward formalizing a gig economy sector that has so far operated largely in legal grey areas.

The bill, called the Provincial Motor Vehicle (Amendment) Act, 2025, applies to Islamabad and aims to introduce oversight, licensing, and safety protocols for platforms like Indrive, Uber, and their drivers.

For years, ride-hailing apps have filled the gap in public transport, offering flexible work to thousands of drivers and convenient travel to millions of users. But the sector has remained unregulated, and incidents of harassment, particularly involving women passengers, have sparked widespread concern.

The proposed law would change that.

Under the bill, no company or individual will be allowed to operate an online cab service without a certificate of registration and a driving permit issued by a designated authority.

Authorities would be required to vet both vehicles and drivers, checking for training, fitness, and background before issuing a license.

Platforms will also be expected to maintain a detailed database of drivers, conduct annual vehicle inspections, and share ride histories with the authorities when required.

Most significantly, insurance coverage for drivers and fare transparency for passengers will be mandatory.

"This is about protecting people who just want to get from point A to B safely," said Senator Ali, the mover of the bill.

While many ride-hailing companies offer flexible income opportunities, critics have long pointed out that a lack of regulation leaves both drivers and riders vulnerable.

Drivers often work long hours without formal labor protections. Passengers, especially women, face risks without clear complaints or redress mechanisms.

The bill, which faced no government opposition, has now been forwarded to the relevant standing committee for further review.

If passed, it could set a precedent for regulating gig economy platforms more broadly in Pakistan, including food delivery services and freelance apps.