RAWALPINDI: The Rawalpindi Development Authority (RDA) has sought the release of an additional Rs7 billion by the Punjab government for the Ring Road project worth Rs47 billion.
A senior official of the RDA told Dawn that the government had been requested to release the funds so that payment would be made to the contractor - Frontier Works Organisation (FWO).
“Punjab government has allocated Rs3 billion under the annual development programme (ADP) 2026-27 and it will release the funds by next month. The civic body has sought Rs7 billion more from the government,” he said.
He said Rs28 billion had been released till the end of the fiscal year 2025-26 and all funds provided to the contractor.
Punjab govt allocates Rs3bn in ADP 2026-27, will release funds by next month, says official
He said the project cost increased in the last few years due to price escalation of construction material and petroleum prices, raising the total cost of the project to Rs47 billion.
He said Rs4 billion worth of Thalian Interchange was included in the project but work on the interchange will start once the main carriageway opens for the traffic.
He said funds for the Thalian project would be released after opening of the Ring Road.
When contacted, Deputy Project Director Ashfaq Sulheri said the construction work on Rawalpindi Ring Road had been completed and finishing work started. However, he said two ramps on Chakri interchange and Chak Beli Khan were pending as work had slowed down due to rains.
He said the installation of lampposts and other lights had also been completed. Moreover, signboards have been installed while Parks and Horticulture Agency (PHA) was working on grass and tree plantation. “Work on fencing is 80 per cent completed while construction of toll plazas is underway,” he said.
About the funds, he said Rs3 billion will likely be released by the end of this month and RDA had sought Rs7 billion more to pay to the contractor.
He said the price escalation would be calculated after the completion of the project.
Mr Sulheri said that there was no issue of funding as the Punjab government had assured to provide the funds as soon as possible.
“The Ring Road would generate revenue for the provincial government besides solving traffic issues in the twin cities of Rawalpindi and Islamabad as all heavy traffic would use the Ring Road,” he said.
“It is estimated that initially 30,000 vehicles will use Ring Road on a daily basis and the speed limit on the main carriageway is 120 km per hour,” he said.
The total length of Ring Road is 38.3km from Baanth (G.T. Road) to Thalian (Motorway). It has five interchanges at Baanth, Maira Mohra, Khasala, Kolian Parr and Thalian. An industrial zone will be established around the road.
Published in Dawn, July 27th, 2026