Lahore Electric Tram Project: Contract Finalized, Launch in New Fiscal Year
Contract Finalized, Procurement Underway
Speaking to journalists, Punjab Transport Minister Bilal Akbar Khan was asked about an earlier plan to launch a rail-based transport service in Lahore by January, which did not materialize as scheduled.
Responding to the question, the minister clarified that real progress has been made behind the scenes. According to him, the contract for the electric tram has been awarded, and the procurement phase is currently in progress.
"The contract process for the electric tram has been finalized, and procurement activities are ongoing. Citizens will see electric trams operating on Lahore's roads in the new fiscal year," Bilal Akbar Khan said.
The timeline ties into the province's broader fiscal planning; the project's rollout window lines up with the start of the new financial year outlined in the Rs5.9 trillion Budget 2026-27, which Punjab unveiled this month.
Confirmed Route: CBD to Istanbul Chowk
Sharing details of the alignment, the minister said the electric tram is expected to run along a corridor connecting some of Lahore's busiest commercial and urban zones.
The proposed route will begin at the Central Business District (CBD), pass through Jail Road and Mall Road, and terminate at Istanbul Chowk — a stretch designed to serve thousands of daily commuters while easing traffic congestion in the city center.
Metro-Style Plan Shelved in Favor of Faster Rollout
The transport minister also disclosed that an earlier proposal to build a dedicated metro-style infrastructure for the tram has been deferred. The revised, lighter-footprint plan is intended to speed up delivery while minimizing environmental disruption.
Bilal Akbar Khan emphasized that no trees will be cut down during construction or operation of the new system — a direct response to concerns repeatedly raised by environmental advocates and Lahore residents over the impact of large infrastructure projects on the city's green cover.
This comes alongside a string of other recent Punjab transport policy decisions, including the move to allow under-18 riders to legally use motorcycles under new provincial rules.
Why an Electric Tram for Lahore
Electric trams are widely regarded as a cleaner alternative to conventional fuel-powered transport, helping cut carbon emissions and improve urban air quality. Urban planning experts see modern tram networks as a practical way for fast-growing cities like Lahore to build efficient, reliable, and sustainable transit systems without the cost and disruption of a full metro build-out.
Expected Commuter and Economic Benefits
Once operational, the service is expected to deliver:
- Improved connectivity across CBD, Jail Road, Mall Road, and Istanbul Chowk
- Reduced travel times for daily commuters
- Lower environmental impact than diesel-run transport
- Better access to Lahore's commercial and business districts, supporting local economic activity
No final launch date has been officially announced, but the Punjab government says visible progress will be seen during the new fiscal year. With the contract awarded and procurement underway, Lahore is moving closer to operating its first modern electric tram system.
