Key Road Project in Rawalpindi Delayed by Another Year

The Rawalpindi-Kahuta Road upgradation project will not be completed in the next financial year after the federal government allocated only Rs. 1 billion for the scheme in Budget 2026-27.

According to official documents, the Executive Committee of the National Economic Council (ECNEC) approved the project on July 27, 2023. The scheme covers the construction and widening of a 28.4-kilometer dual carriageway from Rawalpindi to Kahuta.

It also includes a four-lane overhead bridge at the Sihala Railway Crossing, the Sihala Bypass, and the Kahuta Bypass.

In the federal budget for fiscal year 2025-26, Rs. 23.84 billion was earmarked for the project. However, progress on the ground remained limited, with only around one kilometer of dual carriageway near Hothla Stop completed during the year.

Work on the Kahuta Bypass also remained largely suspended after the preparation of a semi-developed formation.

The project has again been included among the National Highway Authority’s ongoing development schemes in Budget 2026-27, which was presented on June 12, 2026. Budget documents show the revised total cost of the project at Rs. 23.545 billion.

Official estimates show that expenditure on the project up to June 30, 2026, was expected to reach Rs. 6.586 billion. Another Rs. 16.958 billion has been carried forward into the new financial year.

However, with only Rs. 1 billion allocated for 2026-27, concerns have grown over the project’s implementation pace and its chances of completion during the current fiscal year.

Experts and local stakeholders believe the limited allocation could push the project back by several more years. They also warn that phased and prolonged construction may increase the overall project cost and damage partially completed sections before the scheme is fully completed.

The Rawalpindi-Kahuta Road is a vital transport corridor connecting Rawalpindi with Kahuta and providing onward access to Kotli and Rawalakot in Azad Jammu and Kashmir.

The corridor also links several important regional routes, including Mator, Bewar, Kallar Syedan, Chowk Pindori, Rawat, Gujar Khan, and Lahore through the GT Road network.

Due to its role in defense mobility, regional trade, public transport, and economic activity, the road is considered a key national infrastructure asset.