Lahore: The government has postponed the demolition of nearly 2,300 shops along Circular Road until alternative arrangements are made for the affected traders, as part of its plan to restore the historic Circular Garden through the Lahore Authority for Heritage Revival (LAHR).
The decision comes in response to protests and resistance from traders concerned about displacement without viable alternatives. The Circular Garden, originally developed during the British era after the dismantling of several Walled City gates, has gradually been encroached upon over the decades, with 2,285 shops built on the land.
Read: Lahore gets 1st smart crosswalks as CBD embraces walkable urbanism
Lahore Deputy Commissioner Syed Musa Raza stated that while these encroachments were regularized in the past through rent collection, growing urban challenges such as traffic congestion, pollution, and strain on civic infrastructure prompted the government to initiate restoration efforts through LAHR.
As part of a phased redevelopment plan, the government will now construct underground markets at three key locations—Taxali, Sheranwala, and Mochi gates—to accommodate the existing traders. Each site will include dedicated shop spaces along with parking plazas and essential civic amenities such as water supply, drainage, electricity, and security.
Raza confirmed that no shop will be vacated until the new facilities are completed. Initially, the administration had proposed a compensation model based on one year’s business profits, but traders opted instead for relocation to purpose-built markets.
Punjab Minister for Housing Bilal Yasin met with representatives of 18 traders’ unions on Saturday and reiterated the government’s commitment to fulfilling their demands. He assured them that the new commercial facilities would be developed to international standards under the direction of Mian Nawaz Sharif, who chairs the LAHR.
Read: LDA tasked with making Lahore dust-free
The first phase of the redevelopment will involve the construction of 2,285 shops and godowns. The project for affected traders will be executed by the Communication and Works Department.
Officials have emphasized that the restoration initiative aims to strike a balance between urban renewal and protecting the livelihoods of existing businesses, while preserving the city’s cultural heritage.