The Punjab government has deferred six major infrastructure projects in Rawalpindi for the upcoming fiscal year, citing financial constraints and a significant shortfall in tax collections, ranging between 40% and 60% across various departments.
According to a news report, projects affected by the delay include the Leh Expressway, a sewage treatment plant, the Rawalpindi Ring Road, the Chahan Dam water supply scheme, Daducha Dam, and the Ghazi Barotha Dam project.
In addition, new development schemes under the Rawalpindi District Council and Rawalpindi Municipal Corporation have been put on hold, with no funding allocated until at least June 30, 2025.
Rising construction costs have further inflated the estimated expenses for these projects. The Leh Expressway, initially budgeted at Rs17 billion, is now projected to cost between Rs80 billion and Rs85 billion. The sewage treatment plant’s cost has doubled from Rs30 billion to Rs60 billion, while the Chahan Dam water supply project has increased from Rs6.5 billion to Rs8 billion.
The Ghazi Barotha Dam project has been deemed unfeasible due to an additional Rs100 billion in estimated costs.
The Rawalpindi Ring Road project has faced repeated delays, with its completion timeline revised four times in the past year. While officials now expect it to be completed in the first half of the 2025-26 fiscal year, there is a possibility of further delays pushing it into 2026.
Meanwhile, the provincial government has withheld funds for new projects under the Rawalpindi District Council and Rawalpindi Municipal Corporation until at least mid-2025.
However, funding allocations for Punjab Assembly and National Assembly members are expected within the next two months, with a final decision anticipated after Eid.
Tax-collecting agencies have been instructed to intensify efforts to meet their revenue targets, with authorities warning of strict action against non-compliance.
