Funding cut slows Kahuta Road upgrade project

The long-awaited Rawalpindi–Kahuta Road upgradation project is unlikely to be completed during the current financial year after the federal government allocated only Rs1 billion for the scheme in the Budget 2026–27, despite its strategic significance and the substantial funds earmarked in previous years.

The project, which carries considerable importance due to its connectivity with two major routes leading to Azad Jammu and Kashmir and its status as a key defence corridor, has already witnessed significant delays.

During the previous financial year, only around one kilometre of dual carriageway was completed despite the allocation of billions of rupees for the scheme.

According to official documents, the Executive Committee of the National Economic Council (ECNEC) approved the project on July 27, 2023. The scheme involves the construction and widening of a 28.4-kilometre dual carriageway from Rawalpindi to Kahuta, including a four-lane overhead bridge at the Sihala Railway Crossing, the Sihala Bypass and the Kahuta Bypass.

The federal budget for fiscal year 2025–26 had earmarked Rs23.84 billion for the project. However, progress on the ground remained extremely slow. During the year, only a short stretch of approximately one kilometre of dual carriageway near Hothla Stop was completed, while work on the Kahuta Bypass remained largely suspended after the preparation of a semi-developed formation.

In the Budget 2026–27, presented on June 12, 2026, the project has once again been included under the National Highway Authority (NHA)'s ongoing development schemes. Budget documents show the revised total project cost at Rs23.545b.

According to official estimates, expenditure on the project up to June 30, 2026 was expected to reach Rs6.586b, while funds amounting to Rs16.958b have been carried forward into the new financial year. Despite this sizeable remaining allocation, only Rs1b has been earmarked for the scheme in 2026–27, raising serious concerns about its pace of implementation.

Experts and local stakeholders believe that the limited allocation will not only prevent completion of the project during the current financial year but could also extend its construction timeline by several more years. They warn that prolonged execution in phases is likely to increase overall project costs and may lead to deterioration of partially completed sections before the scheme reaches completion.

The Rawalpindi–Kahuta Road serves as a vital transport corridor linking Rawalpindi with Kahuta and providing onward access to Kotli and Rawalakot in Azad Jammu and Kashmir. Owing to its strategic and defence-related significance, the route is widely regarded as a key national infrastructure asset.

In addition to its links with Azad Kashmir, the corridor connects with several important regional routes, including Mator, Bewar, Kallar Syedan, Chowk Pindori, Rawat, Gujar Khan and Lahore via the GT Road network. The road is therefore considered essential not only for defence and strategic mobility but also for regional trade, public transport and economic activity.

With construction progress continuing at a slow pace and funding remaining limited, residents, commuters and business communities fear that the much-needed modernisation of the Rawalpindi–Kahuta corridor may remain incomplete for years to come.