The Rawalpindi–Kahuta Road upgradation project is unlikely to be completed in the upcoming financial year after the federal government allocated only Rs. 1 billion for the scheme in Budget 2026–27.
According to official documents, the project was approved by the Executive Committee of the National Economic Council (ECNEC) on July 27, 2023. It involves the construction and widening of a 28.4-kilometre dual carriageway from Rawalpindi to Kahuta.
The scheme also includes key components such as a four-lane overhead bridge at the Sihala Railway Crossing, along with the development of the Sihala Bypass and Kahuta Bypass.
In the federal budget for 2025–26, Rs. 23.84 billion had been allocated for the project. Despite this, on-ground progress remained limited, with only about one kilometre of dual carriageway completed near Hothla Stop during the year. Work on the Kahuta Bypass also remained largely stalled after only partial formation was prepared.
The project has once again been included in the National Highway Authority’s ongoing development portfolio in Budget 2026–27, presented on June 12, 2026. Budget documents place the revised total cost at Rs. 23.545 billion.
Officials estimate that total spending up to June 30, 2026, will reach Rs. 6.586 billion, while Rs. 16.958 billion has been carried forward into the new fiscal year. However, with only Rs. 1 billion allocated for 2026–27, concerns are rising over the slow pace of execution and the likelihood of timely completion.
Experts and local stakeholders warn that such a limited allocation could delay the project by several years. They also caution that prolonged, phased construction may further increase costs and potentially damage partially completed sections before completion.
The Rawalpindi–Kahuta Road serves as an important transport corridor linking Rawalpindi with Kahuta and providing onward access to Kotli and Rawalakot in Azad Jammu and Kashmir. It also connects key regional routes including Mator, Bewar, Kallar Syedan, Chowk Pindori, Rawat, Gujar Khan, and extends toward Lahore via the GT Road network.
Given its importance for defence mobility, regional trade, public transport, and economic activity, the road is considered a strategic national infrastructure project.
