Budget cuts stall major projects

Annual district development allocations reduced by 60% amid financial crunch

RAWALPINDI:

Amid a severe financial crisis, the development budgets of all development authorities in Rawalpindi Division have been significantly reduced, while six major development projects have been put on hold for the new fiscal year.

The annual district development programmes of all six districts—Rawalpindi, Attock, Jhelum, Chakwal, Talagang and Murree—have also been slashed by 60 per cent.

As a result, no new mega development project is expected to begin before June 30, 2027.

The plantation of Miyawaki forests has also been suspended across the division. According to district administration sources, no Miyawaki forest has been established in Rawalpindi city or any other district during the past three years.

Sources said two flagship projects associated with former interior minister Sheikh Rashid Ahmed's hometown—the Leh Expressway and the Mother and Child Hospital—have been shelved indefinitely and will not be revived during the tenure of the present government.

The Murree Road Signal-Free Corridor project has also been deferred until December 2027.

The proposed mega sewerage tunnel project aimed at preventing annual urban flooding in Rawalpindi has also been quietly abandoned.

Meanwhile, the Ghazi Barotha Water Project, intended to meet the water needs of Rawalpindi and Islamabad for the next 100 years, has been scrapped after its estimated cost increased from Rs17 billion to Rs110 billion.

Relevant development authorities have reportedly been told that the projects could only proceed if funding is secured through loans from the World Bank or the Asian Development Bank, which officials consider highly unlikely.

Former Rawalpindi Development Authority chairman Tariq Murtaza said the Leh Expressway, sewerage tunnel and water treatment plant had been approved and funded during his tenure, but were halted after the change of government.

He said prolonged delays have pushed the estimated cost of the Leh Expressway from Rs17 billion to Rs100 billion, while the sewerage tunnel and water treatment plant project has risen from Rs30 billion to Rs110 billion.

He warned that further delays would make the schemes financially unviable and urged the immediate launch of the Murree Road Signal-Free Corridor, Leh Expressway and sewerage tunnel projects to resolve Rawalpindi's chronic flooding and traffic congestion.

 

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RMC approves Rs10.36b surplus budget

our correspondent

RAWALPINDI. The Rawalpindi Municipal Corporation (RMC) has approved a surplus budget of Rs10.3663 billion for the fiscal year 2026-27.

The budget was approved by the commissioner in his capacity as administrator. It is more than Rs2.4163 billion higher than the previous year's budget. The RMC had approved a budget of Rs7.95 billion for FY2025-26.

Rs7.25 billion has been allocated for original works, maintenance and repair-based development projects, while Rs2.70 billion has been earmarked for non-development expenditures, including salaries, pensions and other miscellaneous expenses.

The corporation expects to generate Rs4 billion from existing sources, Rs2 billion from savings schemes and Rs4.50 billion through building plan approvals, commercialisation fees, rent from municipal properties, parking fees at Pirwadhai General Bus Stand and other locations, slaughterhouse charges and other revenue sources. As there are currently no elected local government representatives, the budget was approved by the newly appointed commissioner acting as administrator of the Municipal Corporation.

RMC focused the budget priorities on austerity, reducing non-development expenditures, increasing revenue generation and improving civic facilities.

The underground cabling and beautification project in Raja Bazaar and Commercial Market is nearing completion, while a state-of-the-art Municipal Assembly Hall has been constructed adjacent to the Municipal Corporation office for future elected representatives.

Proposed projects for three parking plazas at the former municipal office on Saddar City Road, Banni Chowk and Commercial Market have already been forwarded to the Punjab government.