Neela Gumbad, one of Lahore’s busiest and most congested commercial areas, is expected to become the city’s first walk-friendly zone by October 2026, with the redevelopment project now 76% complete, according to the Traffic Engineering and Planning Agency (TEPA).
TEPA Chief Engineer Iqrar Hussain said construction began in October 2025 with an estimated cost of Rs2.45 billion. He added that nearly 78% of the allocated budget has already been spent, while the project remains on schedule for completion by October 9, 2026.
Situated near major landmarks including King Edward Medical University, Punjab University, Anarkali Bazaar, Bicycle Market, Tyre Market, and Bank Square, Neela Gumbad has long faced challenges such as severe traffic congestion, illegal encroachments, limited parking facilities, and frequent vehicle theft.
As part of the redevelopment, TEPA is constructing a three-level underground facility after clearing existing shops and other structures. The new complex will provide 374 parking spaces for cars and 790 spaces for motorcycles, while 69 shops will be relocated to the first basement level.
The upgraded area will feature wide pedestrian walkways designed to encourage walking and reduce vehicle movement. Other modern facilities include a computerized parking management system, CCTV surveillance, advanced firefighting equipment, public washrooms, and elevators to improve accessibility for visitors.
Officials believe the project will significantly improve traffic flow in one of Lahore’s busiest commercial districts while creating a safer and more comfortable environment for pedestrians.
Once completed, the redevelopment is expected to transform Neela Gumbad into Lahore’s first dedicated walk-friendly area, offering a modern urban space for shoppers, commuters, students, and tourists. Authorities say the initiative is part of broader efforts to improve urban mobility, reduce congestion, and promote pedestrian-friendly infrastructure across the city.
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