The much-anticipated Rawalpindi Ring Road project, a major infrastructure initiative aimed at easing traffic congestion and promoting economic development in the twin cities, is facing a significant cost hike due to a major design change.
What’s Changing? The Thalian Interchange Redesign
With over 50% of the 38.3-kilometer Ring Road already established, the Thalian Interchange—a critical junction in the project—has now been kept aside for a major redesign. This decision came forward after making a number of consultations with the National Highway Authority, which governs the area where the interchange is located.
The new plan calls for a more expansive and complicated structure that has the guts to manage increased traffic flow and future connectivity needs. This redesign is part of a broader strategy to future-proof the Ring Road and ensure it can support economic expansion and urban sprawl in the coming decades.
From Cost Cuts to Cost Surge
The Executive Committee of the National Economic Council (ECNEC) had previously approved a revised PC-1 at Rs 33 billion, reducing the budget from an earlier Rs 39 billion.
Read more: Half work completed on 38.3-kilometer Rawalpindi Ring Road
However, with the redesign of Thalian Interchange, need for additional land acquisition, surging construction material prices and outdated 2021 contract rates, the cost is now expected to climb back to Rs 39–40 billion.
The Frontier Works Organization (FWO), managing the construction under the Rawalpindi Development Authority’s (RDA) Project Management Unit (PMU), has formally requested a cost revision in line with 2025’s economic realities.
Land Acquisition and Future Expansion
The RDA has been instructed to initiate Section 4 for additional land acquisition required for the redesigned interchange. This new layout will also serve as a gateway to Phase 2 of the project, making it a cornerstone for future development.
Pending Economic Zones & Completion Deadline
Although construction progress remains steady, a proposal to develop economic zones on both sides of the Ring Road is still awaiting approval. These zones are seen as crucial for turning the road into an economic corridor.
Chief Minister Maryam Nawaz has set December 2025 as the target date for the project’s completion.
Conclusion: A Necessary Investment
While the redesign will increase project costs, officials argue it’s a strategic move that will maximize long-term benefits. The upgraded interchange and the broader infrastructure improvements are expected to ease traffic, boost trade, and unlock new growth for Rawalpindi and surrounding areas.