Lahore Yellow Line Project Delay 2025 – Major Transport Update
The Punjab government has confirmed that the Lahore Yellow Line Project Delay — one of the province’s most anticipated infrastructure initiatives — is unlikely to launch within the current fiscal year.
Officials cite funding challenges, flood rehabilitation expenses, and priority shifts toward other transport projects as reasons for the delay.
Despite the setback, government authorities stress that the Yellow Line has not been canceled and remains part of Punjab’s broader urban transport strategy. However, a formal launch before June 2026 now seems improbable.
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Background: What Is the Lahore Yellow Line Project?
The Lahore Yellow Line was designed to be the third major mass transit corridor for the provincial capital, following the success of the Metro Bus (Red Line) and the Orange Line Train.
Stretching approximately 24 kilometers, the Yellow Line aims to connect key urban areas including Canal Road, Thokar Niaz Baig, Johar Town, and DHA, reducing traffic pressure on Lahore’s busiest routes.
When completed, it is expected to carry more than 200,000 passengers daily, providing an affordable, safe, and eco-friendly alternative to private commuting.
Why the Yellow Line Project Is Delayed
According to officials from the Punjab Transport Department, the project has faced multiple administrative and financial obstacles.
The main reasons behind the delay include:
1️⃣ Diversion of Funds for Flood Rehabilitation:
After the devastating floods that hit southern Punjab, the government redirected billions of rupees toward rebuilding damaged infrastructure and supporting displaced communities.
2️⃣ Other Ongoing Transport Priorities:
The government’s focus has temporarily shifted to completing other urban transport projects — specifically the Faisalabad Metro Bus System and a busway corridor in Gujranwala.
3️⃣ Inflation and Budget Constraints:
Rising material costs and reduced fiscal space have made it difficult to allocate sufficient funds for the Yellow Line within the current fiscal year.
4️⃣ Environmental and Technical Revisions:
Engineers are reassessing construction methods to preserve the environment while keeping project costs manageable.
Nespak’s Role and Revised Design Proposals
The National Engineering Services Pakistan (Nespak), serving as the design consultant, has proposed several engineering options to make the project more cost-efficient and environmentally sustainable.
Two main alternatives are currently being evaluated:
- Cut-and-Cover Technique:
A semi-underground approach that allows for construction with minimal tree removal. However, it would cause temporary but significant traffic disruptions along Canal Road. - Fully Underground Route:
This option would preserve nearly 1,400 trees along the 24-kilometer corridor, protecting Lahore’s green cover. However, it would also require higher funding and longer completion time.
Officials say both options are under environmental and technical review, with a final decision expected in mid-2026.
Official Statement from Punjab Authorities
A senior government spokesperson clarified that the Yellow Line Project remains active within the province’s long-term transport policy.
“The project has not been scrapped. We are facing temporary financial challenges due to rehabilitation programs, but the Yellow Line will resume once the provincial budget stabilizes,” the spokesperson confirmed.
The government also aims to ensure that construction begins before the next general elections, under the leadership of Chief Minister Maryam Nawaz.
Environmental Protection and Urban Planning
The Yellow Line route passes through Lahore’s iconic Canal Road, a heritage zone lined with thousands of mature trees.
Preserving this green corridor is one of the main priorities in the revised project plan.
To address environmental concerns, the Punjab government has instructed Nespak to:
- Avoid unnecessary tree removal.
- Ensure compensatory plantation of 10 trees for every one cut.
- Adopt low-emission construction practices.
- Install modern noise and dust control barriers during development.
If the underground alignment option is selected, it will allow for maximum preservation of Lahore’s ecological character while improving urban mobility.
Funding and Financial Challenges
The Yellow Line’s total estimated cost stands at over Rs. 85 billion, but the government has yet to finalize its financing model.
Initially, funding was expected from international lenders such as the Asian Infrastructure Investment Bank (AIIB) and the Asian Development Bank (ADB).
However, global financial constraints and Pakistan’s macroeconomic conditions have delayed loan negotiations.
Officials are now exploring public-private partnerships (PPP) and long-term infrastructure bonds as alternative funding methods.
“The project’s financing strategy is being revised to include multiple investors, minimizing dependency on government cash flow,” said a planning official.
Current Status of Lahore’s Transit Network
Despite the delay, Lahore continues to operate two major public transport systems:
| Service | Mode | Length | Daily Ridership | Status |
|---|---|---|---|---|
| Metro Bus (Red Line) | Bus Rapid Transit | 27 km | 150,000 | Operational |
| Orange Line Train | Metro Rail | 27 km | 235,000 | Operational |
| Yellow Line | Hybrid/Busway | 24 km | 200,000 (Expected) | Delayed |
These systems collectively transport nearly 400,000 passengers per day, significantly reducing congestion and travel time across the city.
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Impact on Commuters and Urban Development
The delay in the Yellow Line Project affects not only daily commuters but also urban planners and environmental advocates.
Without the Yellow Line, Canal Road, Ferozepur Road, and Mall Road continue to experience traffic overloads during peak hours.
Additionally, the delay postpones potential economic benefits such as:
- Job creation for thousands of skilled and unskilled workers.
- Reduced fuel consumption and air pollution.
- Improved connectivity between residential and commercial hubs.
Public Reaction and Citizen Concerns
Citizens have expressed disappointment over the delay, urging the government to prioritize sustainable urban transport.
Commuters say that expanding mass transit is essential to counter Lahore’s worsening smog, congestion, and rising fuel costs.
Social media discussions highlight a growing call for eco-friendly development, with many supporting the underground construction model despite higher costs.
Focus Shift to Other City Projects
Government sources indicate that funds temporarily allocated for the Yellow Line have been redirected toward:
- The Faisalabad Metro Bus Project, currently under construction.
- The Gujranwala Busway Corridor, designed to connect industrial zones.
- Post-flood rehabilitation projects in South Punjab districts.
While this reallocation has slowed Lahore’s progress, officials insist that the Yellow Line remains part of the Punjab Urban Mobility Plan 2030.
Nespak’s Commitment and Progress Updates
Nespak engineers continue to work on revised feasibility studies, ensuring the project remains technically viable.
Their main objectives include:
- Updating the PC-1 document with new cost estimates.
- Conducting Environmental Impact Assessments (EIA).
- Coordinating with the Urban Unit and Lahore Development Authority (LDA) for zoning compliance.
“We are committed to delivering an efficient, affordable, and eco-friendly design,” a Nespak official stated.
Expected Timeline for the Yellow Line
Although delayed, officials are optimistic about resuming work once funding and design reviews are complete.
| Phase | Expected Timeline |
|---|---|
| Environmental Review & Feasibility | Q2 2026 |
| Financial Approval | Q4 2026 |
| Construction Start | Q1 2027 |
| Completion Target | 2029 |
The timeline aligns with Punjab’s five-year urban mobility strategy, which aims to expand public transit to all major cities by 2030.
Economic Importance of the Project
Urban transport analysts emphasize that the Lahore Yellow Line is more than a city project — it’s an economic investment that could:
- Boost industrial productivity through faster logistics.
- Increase commercial property values along the corridor.
- Enhance tourism and urban accessibility.
A World Bank transport study found that every Rs. 1 invested in urban transit returns Rs. 3 in economic value through improved efficiency and time savings.
Future Vision: A Smart and Green Lahore
Under the Punjab Green Transport Initiative, the Yellow Line is expected to integrate with electric buses, digital ticketing, and AI-based traffic management systems.
This will make it part of a modern, smart, and sustainable public transport network.
Experts believe the Yellow Line will be crucial in achieving climate goals and reducing vehicular emissions in Lahore’s expanding metropolitan region.
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Conclusion About Lahore Yellow Line Project Delay 2025:
The Lahore Yellow Line Project Delay 2025 reflects the financial and logistical challenges facing Punjab’s ambitious urban transport agenda.
Although temporarily stalled, the project remains on track for future implementation once funding and design approvals are finalized.
For millions of Lahoris who rely on public transport, the Yellow Line represents hope for faster, cleaner, and safer commuting.
When completed, it will stand as a landmark achievement in sustainable urban mobility and a testament to the government’s commitment to modernizing infrastructure across Punjab.
