RAWALPINDI: Several major development projects under construction in Rawalpindi have been carried forward into the new fiscal year 2026-27 after remaining incomplete at the close of FY2025-26. These include the Children's Hospital, Rawalpindi Ring Road Phases I and II, Raja Bazaar and Commercial Market Beautification Project, Rawalpindi-Kahuta Road and the Chahan Dam Water Supply Project. The status of proposed schemes, including Daducha Dam, Chahan Dam, Leh Nullah Sewerage and Flood Control Channel, and alternative traffic routes, is also expected to be determined during the new fiscal year.
Children's Hospital Faces Funding Gap
According to sources, the Mother and Child Hospital, which has remained under construction for the past 21 years, has been included in the 2026-27 budget as the Children's Hospital with an estimated cost of Rs9.264 billion. However, only Rs494.402 million has been allocated for the current fiscal year, while the remaining Rs8.442 billion has been carried forward to FY2027-28, making completion during the current year unlikely.
Rawalpindi-Kahuta Road Progress Stalls
The Rawalpindi-Kahuta Road project, which was included in the previous year's budget with an estimated cost of Rs23.845 billion, recorded only one kilometre of physical progress. It has now been included in the new budget with a revised estimate of Rs23.545 billion, with only Rs1 billion allocated for the current year, leaving its completion uncertain.
Ring Road Phase I Nears Completion
The 38.6-kilometre Rawalpindi Ring Road Phase I, from Banth Interchange on GT Road to Thalian Interchange, costing Rs46.64 billion, is nearing completion but has yet to become operational as a traffic route. The Thalian Interchange, costing Rs4.7 billion, is expected to be completed during the current fiscal year.
Beautification and Water Supply Projects
The Raja Bazaar and Commercial Market Underground Cabling and Beautification Project, launched at an initial cost of Rs875 million, is also expected to reach completion this year, after which its final cost will be determined. The Asian Development Bank-assisted water supply project sourcing water from Chahan Dam, Rawal Dam and Khanpur Dam, costing over Rs33 billion and expected to provide Rawalpindi with an additional 17 million gallons of water per day, is now scheduled for completion in December 2027. Work on the Daducha Dam and Chahan Dam water supply projects could not begin during the previous fiscal year, but their future is expected to be decided in FY2026-27.
