Funding reduction slows Rawalpindi-Kahuta Road upgrade

RAWALPINDI: The upgrading of Rawalpindi-Kahuta Road is now unlikely to be finished in the current financial year after the federal government set aside only Rs1 billion for the project in the Budget 2026-27, despite its strategic importance and much larger allocations in earlier years.

The Executive Committee of the National Economic Council approved the scheme on July 27, 2023. The project covers the construction and widening of a 28.4-kilometre dual carriageway from Rawalpindi to Kahuta. It also includes a four-lane overhead bridge at the Sihala Railway Crossing, along with the Sihala Bypass and the Kahuta Bypass.

The federal budget for fiscal year 2025-26 had earmarked Rs23.84 billion for the scheme, but physical progress remained limited during that period. Only about one kilometre of dual carriageway near Hothla Stop was completed over the year, while work on the Kahuta Bypass was largely halted after a semi-developed formation had been prepared.

Budget allocation and revised cost

In the Budget 2026-27, presented on June 12, 2026, the project has again been listed among the National Highway Authority's ongoing development schemes. Budget documents put the revised total cost at Rs23.545 billion.

Official estimates showed that expenditure on the project up to June 30, 2026 was expected to reach Rs6.586 billion, while Rs16.958 billion was to be carried forward into the new financial year. Even so, only Rs1 billion has been allocated for 2026-27, a level that has raised concern over the speed of implementation.

Concerns over delays

Experts and local stakeholders believe the reduced allocation will not allow the project to be completed during the ongoing financial year and may push its timeline back by several more years. They have also warned that carrying out the work in prolonged phases could increase the overall cost and may damage partially completed sections before the full scheme is finished.

The Rawalpindi-Kahuta Road is described as an important transport corridor connecting Rawalpindi with Kahuta and providing onward access to Kotli and Rawalakot in Azad Jammu and Kashmir. It is also regarded as a key defence corridor because of its strategic significance.

Besides links with Azad Jammu and Kashmir, the route connects with several regional roads, including those leading to Mator, Bewar, Kallar Syedan, Chowk Pindori, Rawat, Gujar Khan and Lahore through the GT Road network. The corridor is considered important for strategic movement as well as trade, public transport and wider economic activity. With construction moving slowly and fresh funding remaining limited, residents, commuters and businesses fear the road's long-awaited modernisation could remain unfinished for years.