With the federal budget for 2025-26 approaching, development funds for all six districts of Rawalpindi Division have been frozen.
The Local Government Department, including Rawalpindi District Council, has been directed to immediately return unutilised development funds to the Ministry of Finance.
All development schemes that have not yet commenced have been categorised as "lapsed funds," with an immediate ban placed on any expenditures. Only schemes that are over 80 per cent complete are allowed to use their allocated funds.
Projects under 80 per cent completion have also been halted.
As a result of the freeze and anticipated tax hikes in the upcoming budget, the estimated cost of nearly 350 halted small and large development schemes is expected to increase by 20-25 per cent. Throughout the outgoing fiscal year 2024-25, Rawalpindi District Council failed to initiate any major development project due to severe financial constraints.
With the suspension of funds, development work in all six districts — Rawalpindi, Attock, Jhelum, Chakwal, Talagang, and Murree — has come to a standstill for 90 days.
Resumption of work is expected by late August or early September, once new funds are released.
COMMENTS
Comments are moderated and generally will be posted if they are on-topic and not abusive.
For more information, please see our Comments FAQ