Rawalpindi Ring Road Project Faces Cost Surge

The Rawalpindi Ring Road—a crucial infrastructure initiative aimed at reducing traffic congestion and promoting regional connectivity—has encountered a major development. Authorities have announced a significant redesign of the Thalian Interchange, a move that is expected to cause a substantial rise in the overall project cost. This decision comes after extensive consultations with the National Highway Authority (NHA), as the Thalian Interchange falls under its operational jurisdiction.

Why the Redesign?

With nearly 50% of the 38.3-kilometer Ring Road already completed, planners determined that the original design of the Thalian Interchange would be insufficient to handle projected traffic volumes and future infrastructure demands. The newly proposed design is more expansive and complex, aiming to support Phase 2 of the Ring Road and ensure long-term functionality.

Revised Budget: From Rs. 33 Billion to Rs. 40 Billion

Originally, the Executive Committee of the National Economic Council (ECNEC) had approved a revised PC-1 for the project at Rs. 33 billion, down from a previously proposed Rs. 39 billion. However, due to the redesign, the budget is now expected to rise again, potentially reaching Rs. 40 billion. The increase factors in the cost of additional land acquisition, inflation in construction material prices, and outdated contract rates initially set in 2021.

The Frontier Works Organization (FWO), tasked with construction under the Rawalpindi Development Authority’s (RDA) Project Management Unit (PMU), has formally requested a revision in contract rates to reflect current market conditions in 2025.

Land Acquisition and Strategic Planning

The RDA has been instructed to initiate Section 4 proceedings to acquire the additional land needed for the updated interchange design. This redesigned Thalian Interchange is also expected to be a key hub in future economic and transportation planning, linking directly to Phase 2 of the Ring Road and potentially serving industrial and commercial developments.

In parallel, a proposal to develop economic zones along both sides of the Ring Road is still awaiting formal approval. These zones are envisioned as economic catalysts, promoting investment and job creation in the region.

Completion Deadline and Government Oversight

Under the supervision of Chief Minister Maryam Nawaz, the provincial government has reaffirmed its commitment to the project, setting a target completion date of December 2025. Despite cost escalations and logistical challenges, the government maintains that the Rawalpindi Ring Road remains a top infrastructure priority.

Dev