RAWALPINDI: After completing 72 per cent of the work, the Rawalpindi Ring Road Project Management Unit has prepared a revised PC-I, increasing the project cost from Rs33 billion to Rs45 billion.

The revision accounts for an additional interchange at Thalian, construction of toll plazas and rising construction material prices.

A senior official of the divisional administration told Dawn that 72 per cent of the Ring Road had been completed and the PMU, in consultation with Nespak, prepared the revised PC-I to reflect the cost increase.

He said the revised PC-I will be sent to the Punjab government through the Rawalpindi Development Authority (RDA) for final approval. He explained three main reasons for the increase.

Inflation, new Thalian interchange and toll plazas add Rs12bn to project cost

“First, construction of toll plazas on the Ring Road with two main plazas at the entry and exit points at Banth and Thalian, along with others at the interchanges. Second, the addition of an interchange at Thalian to connect the Ring Road with the Lahore-Islamabad Motorway. And third, the escalation in construction material prices,” he said.

Earlier, he said, the National Highway Authority (NHA) was responsible for building the interchange and a one-kilometre loop connecting the Ring Road to the Motorway. However, the project management unit obtained a no-objection certificate from NHA to undertake the work itself to avoid delays.

He added that material costs had risen significantly in one year.

Initial estimates showed an increase of 30 to 40 per cent compared to last year.

When contacted, Deputy Project Director of Rawalpindi Ring Road Ashfaq Sulheri confirmed that the revised PC-I had been prepared in consultation with Nespak and would be sent to Lahore through the RDA in the coming week.

He said revision was necessary due to design changes.

“Earlier, the interchange connecting the Ring Road to the Motorway was not included, and the construction of toll plazas is also a new addition. The size of roads at the interchanges has also been increased. Moreover, the contractor has demanded a price escalation,” he said.

He recalled that in January this year, ECNEC had approved the revised PC-I but did not approve price escalation.

“Now the cost of construction material has further increased by about 50 per cent over the past two years,” he said.

Regarding progress, Mr Sulheri said the Punjab government had directed the project management unit to speed up work, especially after delays during the monsoon.

“We have now started working in three shifts. The Soan Bridge has been completed, work on the railway bridge is under way with girder casting started, and asphalt work has begun. So far, over one kilometre of the road has been completed,” he said.

He added that work on interchanges, bridges, and road surfacing was now being carried out simultaneously to make up for the three-month slowdown during the monsoon, with October and November targeted to recover the delay.

According to project details, the Rawalpindi Ring Road will be 38.3 km long with five interchanges at Banth, Chak Baili Khan, Adiala Road, Chakri Road and Thalian.

An industrial zone is also planned along the route.

The six-lane controlled-access road will have a design speed of 120 km/h. 

Published in Dawn, September 30th, 2025