Islamabad, 11 June 2025: Funds Delay has disrupted two high-profile development schemes in Islamabad, as federal authorities have opted to pull out financial backing from both initiatives, according to the 2025–26 budget papers.
The Capital Development Authority (CDA) has now been directed to proceed with the projects independently, relying solely on its own financial capacity.
The affected ventures include the construction of 10th Avenue and the long-stalled Sihala flyover. Launched in 2022 under the Public Sector Development Programme (PSDP), the 10th Avenue project was initially expected to be finished by March 2024. However, repeated holdups have left the project just 44% complete to date.
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Valued at Rs. 10.2 billion, the scheme envisions a five-kilometer corridor stretching from Katarian Bridge along Karnal Sher Khan Road (formerly known as IJP Road) to Srinagar Highway, adjacent to sectors G-9 and G-10.
According to CDA representatives, the primary reason behind the sluggish progress was the inadequate and inconsistent release of federal funds. To date, the agency has only received Rs. 3.5 billion for the project.
The Sihala flyover, which carries a price tag of Rs. 770 million and began in 2021, has also experienced repeated setbacks. Government officials have now instructed CDA to take over full responsibility for the completion of this overpass, despite the fact that construction activity ceased shortly after the contract was awarded.
Funds Delay has shifted the burden entirely onto the CDA, which is now expected to refocus its efforts on finalizing 10th Avenue given the significant headway already made on the ground.
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While both schemes were initially seen as vital components of Islamabad’s transportation master plan, the latest development underscores ongoing fiscal constraints and the growing reliance on local institutions to fulfill infrastructure commitments.
Funds Delay continues to cast uncertainty over timelines and project delivery, raising concerns about future urban mobility in the federal capital.
