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Govt withdraws funding for key Islamabad road projects

News Desk by News Desk
June 11, 2025
in Latest, City
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ISLAMABAD: The federal government has excluded two major ongoing road projects in Islamabad — the construction of 10th Avenue and the Sihala flyover — from its funding list for the financial year 2025-26, according to budget documents.

A private newspaper report said the government has asked the Capital Development Authority (CDA) to complete the projects using its own funds.

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The 10th Avenue project, costing Rs10.2 billion, started in 2022 under the Public Sector Development Programme (PSDP). It was supposed to be completed by March 2024 but got delayed twice.

So far, only 44% of the work has been done. CDA officials blame the slow release of funds for the delay. The government has released only Rs3.5 billion for the project so far.

The five-kilometre-long road is being built from Katarian Bridge on Karnal Sher Khan Road (formerly IJP Road) to Srinagar Highway, near sectors G-9 and G-10.

Local residents, especially from I-9 and I-10, are facing problems due to the delay. “We’ve been waiting for three years for this project to finish,” said Mohammad Kashif, a resident of I-10. He urged the authorities to complete the project soon to avoid further cost increase and traffic problems.


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The Sihala flyover project, worth Rs770 million, started in 2021 but was stopped later. Now, the government has told CDA to handle this project as well. The flyover contract was awarded earlier, but work was halted after little progress. CDA is now focusing on 10th Avenue since nearly half the work is already done.

Sewage Plant Project Gets Negligible Funds

Another key project — a sewage treatment plant near Rawal Dam — has also seen little progress. Though the Rs6 billion project is part of PSDP for 2025-26, only Rs100 million has been allocated this year, showing little interest from the government to complete it soon.

The project was planned to stop untreated sewage from entering Rawal Dam through streams like Korang Nullah. The CDA was to set up treatment plants in Shahdara, Bari Imam, and Banigala. However, it never received full funding.

The pollution issue at Rawal Dam had earlier reached the Supreme Court, which had ordered action, but the matter remains unresolved. Untreated sewage and solid waste continue to contaminate the dam water.


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New Funds for Safe City, Infrastructure

In the new budget, Rs5.1 billion has been set aside for three new projects under the Interior Division. This includes Rs3 billion for expanding the Safe City project and Rs2 billion for infrastructure development in Islamabad.

Jinnah Square Underpass Near Completion

Meanwhile, Chairman CDA and Chief Commissioner Islamabad Muhammad Ali Randhawa visited the Jinnah Square Murree Road Underpass on Saturday along with CDA officials. They reviewed the project’s progress.

Officials informed him that 85% of the construction work is complete. Finishing work has started and will be completed on time as per directions from Federal Interior Minister Syed Mohsin Raza Naqvi.

Work on beautification, including horticulture and electrical installation, has also begun. Drainage systems, roadworks, and asphalt laying are progressing quickly, the officials said.

Tags: Federal Budget 2025-26 IslamabadIslamabad 10th Avenue ProjectIslamabad Road Projects UpdatePublic Sector Development ProgrammeSihala Flyover Project Islamabad
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