Inflation, new Thalian interchange and toll plazas add Rs 12 billion to cost of Rawalpindi Ring Road

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The highly anticipated Rawalpindi Ring Road project, once glanced as a long-overdue solution to choking traffic congestion in the twin cities, has now hit a major financial hurdle.

According to officials, the project’s estimated cost has ballooned from Rs 33 billion to Rs 45 billion, marking a huge increase even as 72 percent of the work has already been completed. 

Why the Sudden Cost Hike? 

Authorities from the Project Management Unit (PMU), working in collaboration with Nespak, have revised the PC-I to reflect new requirements and market realities. Officials cited three major reasons for the jump in costs: 

• Addition of a full-fledged interchange at Thalian, ensuring seamless connectivity to the Lahore-Islamabad Motorway (M-2) 

• Construction of multiple toll plazas to facilitate long-term revenue generation and traffic management 

• Sharp escalation in construction material prices, driven by inflation and supply chain fluctuations 

Deputy Project Director Ashfaq Sulheri confirmed that these additions were not part of the initial plan. “Earlier, the Motorway interchange and toll plazas were not included. Road sizes at interchanges have also been increased, and the contractor has requested a price escalation due to rising costs,” he explained. 

Construction Back on Track 

Despite earlier monsoon-related delays, construction has now resumed with renewed pace. Work is currently being carried out in three shifts to maintain momentum.

Read more: Punjab govt starts feasibility study and allocated Rs 54 million for Phase-II of Rawalpindi Ring Road

Key milestones include: 

• Completion of the Soan Bridge 

• Ongoing asphalt work 

• Progress on the railway bridge and multiple interchanges 

What Will the Finished Project Look Like? 

Once completed, the 38.3-kilometer Ring Road will be a modern six-lane controlled-access corridor with a speed limit of 120 km/h, designed to drastically cut travel time and divert heavy traffic away from urban areas. It will feature: 

• Five fully developed interchanges 

• An industrial zone, opening doors for commercial development and job creation 

While taxpayers may be highly worried regarding the rising costs, officials keep on arguing that the design enhancements will significantly enhance the project’s long-term value.

With the revised PC-I now headed to the Punjab government via the RDA for approval, all eyes are on whether the financial push will be cleared without further delay.