The Punjab government has shelved six critical infrastructure projects in Rawalpindi, valued at over Rs 500 billion, for the 2024-25 fiscal year, citing severe financial strain and a staggering 40-60% shortfall in tax revenues. The deferred projects include the long-awaited Leh Expressway, Rawalpindi Ring Road, Chahan and Daducha Dams, a sewage treatment plant, and the Ghazi Barotha Dam, with no new development schemes under local councils approved until mid-2025.
Officials confirmed the decision stems from collapsing revenue streams and spiraling construction costs. The Leh Expressway, initially pegged at Rs 17 billion, now requires Rs 80-85 billion due to inflation and delays, while the sewage plant’s budget has doubled to Rs 60 billion. The Ghazi Barotha Dam has been scrapped entirely after cost estimates surged by Rs 100 billion. The Rawalpindi Ring Road, already delayed four times in a year, faces a tentative 2025-26 completion, though officials warn it could slip to 2026.
The funding freeze extends to all new initiatives under the Rawalpindi District Council and Municipal Corporation, paralyzing local development. However, allocations for Punjab and National Assembly members are expected post-Eid, sparking criticism over prioritization. “Halting public projects while securing political funds is a betrayal to taxpayers,” said a local councilor.
With tax agencies missing targets, authorities have ordered aggressive recovery drives, threatening penalties for non-compliance. The crisis has raised alarms over Rawalpindi’s crumbling infrastructure, water shortages, and environmental risks from stalled sewage plans. Residents fear prolonged delays will exacerbate urban chaos. “The Ring Road was our hope to ease traffic; now we’re stuck in limbo,” lamented a commuter.
The province’s financial turmoil underscores broader challenges in Pakistan’s fiscal management, with inflation and revenue gaps derailing development. As Rawalpindi braces for another year of stagnation, questions mount over the government’s capacity to balance political priorities with public needs.
