Punjab Urban Transport Corporation (separate organization) was established in February, 1977 under the administrative control of the Federal Government to run the bus service in Lahore and Rawalpindi-Islamabad (Twin Cities). This corporation was registered as a Private Limited Company.
Government of the Punjab dissolved the Punjab Road Transport Board along with all of its assets and liabilities through a notification in 1985. Its employees were transferred to Punjab Urban Transport Corporation.
The Punjab Urban Transport Corporation was renamed as Punjab Road Transport Corporation. In 1997, Government of Punjab decided to wind up the Punjab Road Transport Corporation with effect from 30-06-1997 due to rampant indiscipline in PRTC and sustaining huge losses. The Government of Punjab offered Golden Handshake Scheme Package to the employees of Punjab Road Transport Corporation (PRTC).
