Pakistan’s financial crisis stalls key Rawalpindi projects, exposing development paralysis

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Rawalpindi: Pakistan’s worsening financial constraints have forced the government to drastically scale back development spending across Rawalpindi Division. As a result, several long-promised infrastructure projects are suspended. Meanwhile, concerns over governance and urban planning are rising, as reported by The Express Tribune.

According to The Express Tribune, development allocations for all authorities operating in Rawalpindi Division have been sharply reduced in the new fiscal year. Meanwhile, six major infrastructure schemes have been put on hold.

Annual district development programmes covering Rawalpindi, Attock, Jhelum, Chakwal, Talagang and Murree have also reportedly been cut by around 60 per cent. Consequently, there is little room for new public investment.

The funding squeeze means that no major development initiative is expected to begin before June 30, 2027. Officials have also halted the expansion of Miyawaki forests across the division.

District administration sources said no such urban forest has been developed in Rawalpindi or the neighbouring districts over the past three years. Among the projects placed on indefinite hold are the Leh Expressway and the Mother and Child Hospital. Notably, both projects are closely associated with former interior minister Sheikh Rashid Ahmed’s political constituency.

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The Murree Road Signal-Free Corridor has also been delayed until at least December 2027. Additionally, the proposed underground sewerage tunnel designed to address Rawalpindi’s recurring urban flooding has reportedly been abandoned.

The Ghazi Barotha Water Project was envisioned to provide long-term water security for Rawalpindi and Islamabad. However, the project has been dropped after its projected cost escalated from Rs17 billion to nearly Rs110 billion. This was cited by The Express Tribune.

Authorities have reportedly informed development agencies that these projects could only move forward if financing is secured from international lenders. For instance, the World Bank or the Asian Development Bank may be potential sources.

Former Rawalpindi Development Authority chairman Tariq Murtaza said the Leh Expressway, sewerage tunnel and water treatment plant had received approvals and funding during his tenure. However, the projects were discontinued following a change in government, as reported by The Express Tribune.

(ANI)

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