Rawalpindi | ReNews Pakistan
The Punjab government has revised its earlier plan to establish a Special Economic Zone along the Rawalpindi Ring Road and has decided to develop an industrial estate instead, after policy constraints linked to ongoing discussions with the International Monetary Fund made the SEZ model difficult to pursue at this stage.
According to reliable sources, the Punjab Industrial Estates Development and Management Company has approved the establishment of an industrial estate in the corridor adjacent to the Rawalpindi Ring Road project. The decision marks a major shift from the earlier proposal, under which a full-fledged Special Economic Zone was expected to be developed along the route to attract investment, promote manufacturing and generate employment.
Officials said the key reason behind the change was the fiscal limitation on tax exemptions and incentive packages normally offered under the SEZ framework. Under the current economic environment and discussions with international lenders, the government is not in a position to extend the broader concessions typically associated with Special Economic Zones.
As a result, the provincial authorities have opted for an industrial estate model, which can be implemented within the existing fiscal framework while still creating opportunities for industrial growth in the region.
Sources said that after the required legislative approval from the Punjab Assembly, the land acquisition process for the proposed industrial estate is expected to begin under the relevant legal provisions. The acquired land will later be offered to industrial investors at comparatively affordable rates in order to encourage manufacturing, commercial activity and private sector investment along the Ring Road corridor.
The proposed industrial estate is being viewed as an important economic component of the Rawalpindi Ring Road project, which is currently in its final stages of completion. The 38.6-kilometre Ring Road stretches from Banth Interchange on GT Road to Thalian Interchange on the motorway and is being completed at a revised cost of Rs51 billion.
Officials said the main carriageway and four of the five interchanges, including Banth, Chak Beli Khan, Adiala and Chakr, are nearing completion. The project is expected to be opened to traffic shortly after its formal inauguration.
However, construction work on the Thalian Interchange has faced delays. The interchange has been designed as a broad-based connectivity point, while the National Highway Authority is expected to complete the connecting link from Thalian to Sangjani at a later stage.
Business groups and industrial stakeholders had long demanded the establishment of an economic zone along both sides of the Rawalpindi Ring Road, arguing that the project could become a major investment corridor for the twin cities and surrounding areas. Earlier official engagements with the business community had also indicated support for such a plan.
Representatives of the business community said industrialists remain interested in investing in the area, provided land is made available at reasonable prices and supporting infrastructure, including roads, utilities and access routes, is developed effectively.
Officials maintained that although the SEZ model is not feasible for now due to IMF-linked policy restrictions, the industrial estate framework will still help unlock the economic potential of the Ring Road corridor and support industrial expansion in Rawalpindi and adjoining areas.

Rawalpindi: [ReNews Pakistan]
The Rawalpindi Development Authority (RDA) has decided to construct markets and commercial plazas on vacant plots and open spaces located within its housing schemes across Rawalpindi.
The decision was made during a meeting chaired by Commissioner Rawalpindi Abdul Aamer Khattak. Senior officials of the authority, including Additional Director General Masood Ahmad and Chief Engineer Anwar Baran, also attended the meeting.
During the briefing, the Estate Management Directorate presented details of a new asset management initiative aimed at identifying and utilizing vacant properties and open spaces in 13 housing schemes owned by the RDA.
Officials informed the meeting that the proposed initiative is designed to protect RDA land from illegal occupation, encroachments and land grabbing. They said commercial development on unused land would not only help secure public assets but also create sustainable sources of revenue for the authority.
According to officials, the plan focuses on better use of land already available within existing housing schemes. Markets, plazas and other commercial facilities may be developed at selected sites after completion of design, planning and approval processes.
Commissioner Abdul Aamer Khattak directed RDA officials to take all necessary steps to convert unused land into productive and income generating assets. He said public land should be managed in a structured and transparent manner so that it can support urban development and improve service delivery.
The commissioner also instructed the RDA to extend full cooperation to the Estate Management Directorate for the implementation of the initiative. He directed the relevant departments to prepare project designs for the proposed commercial developments on a priority basis.
Officials said the initiative is expected to help the RDA improve land management, prevent encroachments and strengthen its financial position through planned commercial activity within its housing schemes.

Rawalpindi: [ReNews Pakistan]
Work on the Rawalpindi Ring Road project has entered its final phase, with around 85 percent of construction completed, while the PC1 for the Thallian Interchange has also been approved at an estimated cost of PKR 4.8 billion.
According to project details, the total cost of the Rawalpindi Ring Road, including the Thallian Interchange component, has reached PKR 51.4 billion. Officials said the 38.6-kilometre corridor is being developed as a major infrastructure project aimed at improving regional connectivity, reducing traffic pressure within Rawalpindi city, and providing a faster link between key routes around the district.
The project includes important interchanges at Banth, Chak Beli Khan Road, Adiala, and Chakri, where construction work has also reached an advanced stage. Officials associated with the project said that work on the main route and its interchanges is progressing steadily, while around 15 percent of the remaining work is still pending.
The Ring Road is expected to be opened for traffic by mid-June. However, officials confirmed that the road will initially become operational without the Thallian Interchange, which will be completed and opened separately in a later phase.
The Thallian Interchange, along with a two lane motorway link road beyond it, will be developed by the National Highway Authority. The interchange is considered an important component of the overall project as it will provide improved access to the motorway network and strengthen the road’s role as a regional transport corridor.
Sources in the Rawalpindi Development Authority, which is executing the main Ring Road project, said funds required for land acquisition for the Thallian Interchange are already available within the overall project cost. They added that construction activity on the main corridor is being monitored closely to ensure timely completion.
Once completed, the Rawalpindi Ring Road is expected to play a significant role in easing urban congestion, improving goods movement, and supporting future commercial and residential development along the route.