Rs1bn allocation puts Rawalpindi-Kahuta road project at risk of further delays

Rs1bn allocation puts Rawalpindi-Kahuta road project at risk of further delays

Work on the long-delayed Rawalpindi-Kahuta Road project, including the Sihala railway crossing overpass and Kahuta Bypass, has yet to formally begin in the 2026-27 fiscal year, raising concerns over further delays in completing the Rs23.5 billion infrastructure scheme.

The federal government has allocated only Rs1 billion for the project this fiscal year, despite its inclusion in the development budget. So far, just around one kilometre of the planned 28.4-kilometre dual-carriageway has been completed.

The project was originally estimated to cost Rs23.845 billion in the 2025-26 budget. Its revised cost now stands at approximately Rs23.545 billion, according to budget documents.

The strategically important road connects Rawalpindi with routes leading to Azad Kashmir. The project includes a dual-carriageway from Soan to Kahuta, a four-lane overpass at the Sihala railway crossing, the Sihala Bypass and the Kahuta Bypass.

The Executive Committee of the National Economic Council (ECNEC) approved the project on July 27, 2023. However, progress has remained slow despite the approval.

During the previous fiscal year, authorities completed only about one kilometre of the dual-carriageway between Kahuta and Hothla Stop. Work on a partially developed route for the Kahuta Bypass also came to a halt.

Budget documents estimated cumulative expenditure on the project at Rs6.587 billion by June 30, 2026, leaving Rs16.958 billion to be financed in subsequent years.

With only Rs1 billion earmarked for 2026-27, the allocation falls far short of the remaining funding requirement. The shortfall is likely to prolong construction and delay the completion of a road project that has already faced years of slow progress.