Several major public welfare and infrastructure projects in Rawalpindi have been dropped from the ongoing fiscal year 2025–26 due to severe funding constraints, raising concerns over urban planning and public service delivery in the garrison city. Authorities have confirmed that no funds will be released for these projects for the next eight months, up to August 31, 2026.
Among the shelved initiatives are the long awaited Leh Nullah Expressway, the sewerage tunnel and sewerage water treatment plant, and the Murree Road expansion project from Liaquat Bagh to Chandni Chowk. Despite the absence of financial allocations, senior officials have reportedly been directed to continue making public announcements related to these projects.
Another significant project, the fencing of both sides of Lai Nullah with barbed wire to prevent dumping of waste and construction material, has also been terminated. The Lai Nullah project has remained stalled since 2007. Although its foundation stone was laid for a 22 kilometre stretch, construction was halted in 2008 due to financial and administrative issues.
The initial cost of the Lai Nullah project was estimated at Rs17 billion, which has now escalated to nearly Rs100 billion. This sharp increase has effectively eliminated any possibility of the project’s revival in 2026. Similarly, the sewerage tunnel and water treatment plant project has faced repeated delays.
Originally estimated at Rs30 billion in 2021, the sewerage project’s cost was later revised to Rs52 billion. Although the Asian Development Bank had expressed willingness to finance it, prolonged political delays resulted in the withdrawal of ADB support, further complicating its future.
The Murree Road expansion project has also been shelved due to financial limitations. Murree Road was last carpeted in 2014, and severe traffic congestion continues between Liaquat Bagh and Chandni Chowk from morning to late evening. The proposed widening plan, estimated at Rs9 billion, has now been shifted to the next fiscal year 2026–27, with costs expected to rise further.
