Islamabad Ring Road Project Put on Hold till Next Fiscal Year

 
 
 
Islamabad Ring Road Project put on Hold till next fiscal Year

The Islamabad and Rawalpindi ring roads were the previous government’s mega projects. These two ring roads aimed to connect Rawalpindi and Islamabad. The Islamabad Ring Road is supposed to be started from Sangjani Interchange and terminated at the starting point of Rawalpindi Ring Road. It is a 50-kilometre-long Islamabad Ring Road that would pass through Shah Allah Ditta, Margalla Hills, Bhara Kahu, F-Series sectors, Charah and Kllar Syeddan. The total estimated cost of the project was Rs70 billion, and the federal government was supposed to bear all expenses through the CDA. The Islamabad Ring Road was also named as Islamabad inter-city road. Traffic coming from Hazara and Gilgit-Baltistan was also supposed to link the ring road directly from the Hazara side.

However, due to the scarcity of resources for allocating funds for development programs, the government has proposed a reduction in the development budget from 2022-to 23. The development budget for the fiscal year 2022-23 has been proposed at Rs500 billion against the Rs900 billion allocation for the current ongoing fiscal year of 2021-22. Initially, the Ministry of Finance had indicated a development budget of Rs800 billion for FY2022-23 but was later slashed down to Rs500 billion due to financial constraints.

Due to the reduction in the development budget, the government has issued indicative budget ceilings to dozens of federal government divisions for the fiscal year 2022-23 along with instructions not to make any allocation for various ongoing projects due to limited fiscal space. Therefore, the government has postponed the construction work of the Islamabad ring road project for the next fiscal year and decides not to allocate funds in the new budget of the Capital Development Authority (CDA).

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IMARAT Institute of Policy Studies

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