Pakistan’s worsening financial constraints have forced the government to drastically scale back development spending across Rawalpindi division, leaving several long-promised infrastructure projects suspended and raising concerns over governance and urban planning.
Development allocations for all authorities operating in Rawalpindi division have been sharply reduced in the new fiscal year, while 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, leaving 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, both closely associated with former interior minister Sheikh Rashid Ahmed's political constituency.
The Murree Road Signal-Free Corridor has also been delayed until at least December 2027, while the proposed underground sewerage tunnel designed to address Rawalpindi's recurring urban flooding has reportedly been abandoned. The Ghazi Barotha Water Project, envisioned to provide long-term water security for Rawalpindi and Islamabad, has also been dropped after its projected cost escalated from Rs 17 billion to nearly Rs 110 billion.
The authorities have reportedly informed development agencies that these projects could only move forward if financing is secured from international lenders like the World Bank or the Asian Development Bank. 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, but were discontinued following a change in government.
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