Rawalpindi: Several major development projects in Rawalpindi have been carried forward into the 2026-27 fiscal year after remaining incomplete at the close of FY2025-26, with fresh budget allocations made for their continuation.
The projects include Rawalpindi Ring Road Phase II, the Children’s Hospital, the Rawalpindi-Kahuta Road, the Raja Bazaar and Commercial Market Underground Cabling and Beautification Project, and the Chahan Dam Water Supply Project.
According to official sources, the government will also determine the future of several proposed schemes during the current fiscal year, including the Daducha Dam, Chahan Dam, the Leh Nullah Sewerage and Flood Control Channel, and alternative traffic routes.
The Mother and Child Hospital, which has remained under construction for more than two decades, has been renamed the Children’s Hospital in the FY2026-27 budget. The project carries an estimated cost of PKR 9.264 billion, with PKR 494.402 million allocated for the current fiscal year. The remaining PKR 8.442 billion has been shifted to FY2027-28, indicating that completion is unlikely during the current year.
The Rawalpindi-Kahuta Road project, initially estimated at PKR 23.845 billion, recorded only one kilometre of physical progress during the previous fiscal year. It has been included in the new budget with a revised cost estimate of PKR 23.545 billion, while PKR 1 billion has been allocated for FY2026-27.
The 38.6-kilometre Rawalpindi Ring Road Phase I, extending from Banth Interchange on GT Road to Thalian Interchange, is nearing completion but has yet to open to traffic. The adjoining Thalian Interchange project, costing PKR 4.7 billion, is expected to be completed during the current fiscal year.
Meanwhile, the Raja Bazaar and Commercial Market Underground Cabling and Beautification Project, launched at an initial cost of PKR 875 million, is also expected to be completed this year, after which its final project cost will be determined.
The Asian Development Bank-assisted Chahan Dam Water Supply Project, which will draw water from Chahan, Rawal and Khanpur dams, has an estimated cost of more than PKR 33 billion. The project is expected to add 17 million gallons of water per day to Rawalpindi’s supply and is now scheduled for completion in December 2027.
Work on the Daducha Dam and Chahan Dam water supply schemes did not begin during the previous fiscal year, with their implementation expected to be decided during FY2026-27.
Samra Zulfiqar, a real estate analyst at Zameen.com, is passionate about finding projects that offer buyers the best returns. Her keen insights spotlight the market’s most promising opportunities.
