The federal government has withdrawn funding for two major infrastructure projects in Islamabad—the 10th Avenue road and the Sihala flyover—according to the budget documents for the financial year 2025–26.
Sources said the Capital Development Authority (CDA) has now been tasked with completing both projects using its own financial resources.
The 10th Avenue project, launched in 2022 under the Public Sector Development Programme (PSDP), was initially scheduled for completion in March 2024. However, delays led to multiple extensions, and only around 44 percent of the work has been completed so far.
The Rs. 10.2 billion scheme involves constructing a five-kilometre road from Katarian Bridge on Karnal Sher Khan Road (formerly IJP Road) to Srinagar Highway near the G-9 and G-10 sectors.
CDA officials attributed the delay to slow and insufficient release of funds, saying that only Rs. 3.5 billion had been provided so far.
Meanwhile, the Rs. 770 million Sihala flyover project, initiated in 2021, also faced repeated delays. The government has now asked CDA to manage the project independently, though work had stopped soon after the contract was awarded.
Officials said the CDA will now prioritise completing 10th Avenue, where substantial progress has already been made.
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