Economy of Lahore

Lahore Economy

As of 2008, the city's gross domestic product (GDP) by purchasing power parity (PPP) was estimated at $40 billion with a projected average growth rate of 5.6 percent. This is at par with Pakistan's other economic hub, Karachi, with Lahore (having half the population) fostering an economy that is 51% of the size of Karachi's ($78 billion in 2008). The contribution of Lahore to the national economy is supposed to be around 13.2%. Lahore's GDP is projected to be $102 billion by the year 2025, with a slightly higher growth rate of 5.6% per annum, as compared to Karachi's 5.5%. Central to Lahore's economy is the Lahore Stock Exchange (LSE), Pakistan's second largest stock exchange. Lahore has offices of several Pakistani government corporations including the Water and Power Development Authority (WAPDA) and Water and Sewage Authority (WASA). Food and restaurant businesses remain open all night. Lahore is the second largest financial hub of Pakistan and has industrial areas including Kot Lakhpat and the new Sundar Industrial Estate (near Raiwand). Lahore’s economic base is broad and varied. The city is the engineering hub of the country. Major industries include the manufacture of automobiles and motorcycles, home appliances, steel, telecommunications, information technology, chemicals, pharmaceuticals, computers, engineering, and construction material. A major industrial agglomeration with about 9,000 industrial units, Lahore has shifted in recent decades from manufacturing to service industries. Some 42% of its work force is employed in finance, banking, real estate, community, cultural, and social services. The city is the country’s largest software producing center, and hosts a growing computer-assembly industry.

Lahore's economic strength relies on the fact that it is the biggest city of Pakistan's most populous province. It is also the most advanced in terms of infrastructure, having extensive and relatively well developed road links to all major cities in Punjab and North-West Frontier Province, a rail link with India and the province's biggest International airport. It also has the most developed communications infrastructure in the province, which includes a wide network of fiber optic telephone and cable lines, GSM mobile network, IPP and WiMax. It has the most developed education and health sectors as well, making it the economic, political and educational hub of the province. ‎ As Lahore expands, former residential areas are being turned into commercial centres, and the suburban population is constantly moving outwards. This has resulted in the development of the Liberty Market, MM Alam Road, the new Jail Road (which has some of the largest office buildings in Lahore), and the Main Boulevard.

Lahore is famous as the hub of handmade carpet manufacturing in Pakistan. At present, hand-knitted carpets produced in and around Lahore are among Pakistan's leading export products, and their manufacturing is the second-largest cottage and small industry.

Craftsmen in Lahore produce almost every type of handmade carpet using popular motifs such as medallions, paisleys, traceries, and geometric designs. The Lahore Design Centre at the Punjab Small Industries Corporation maintains a separate section of carpet designing to experiment with new designs. Lahore is famous for single-wefted designs in Turkoman and Caucasian style and double-wefted Mughal types.

Metro, Makro and Hyperstar (Carrefour) have situated their headquarters in Lahore.

Projects:

Among the projects currently under construction in Lahore is the long-delayed Lahore Expo Centre.

Lake City is a resort and residential development planned on the outskirts of Lahore. Covering an area of more than 2,104 acres (851 ha), the resort will include lush green parks, sinuous lakes, an 18-hole regulation golf course and other features.

Defense Raya Golf Resort, also under construction, will be Pakistan's largest and Asia's largest golf course. The project is the result of a partnership between DHA Lahore and BRDB Malaysia. The rapid development of large projects such as these in the city is expected to boost the economy of the country. Among the many other projects under construction in Lahore are: Pace Tower (24 floors, under construction), Mall99 (21 floors, under construction), Lahore Expo Center (under construction), Expo Center tower (approved), IT Tower (23 floors, under construction), Alamgir Tower (31 floors, under construction), DHA Haly Tower (low rise, under construction), Lahore Ring Road (under construction), Lahore Sports City (approved), Kot Lakhpat elevated expressway (approved), Lahore Rapid Mass Transit System (vision), Xinhua Mall (20 floors, under construction), Lahore-Sialkot motorway (under construction), Boulevard Heights (19 floors, under construction), Pearl Continental Tower (40 floors, 152 meters, proposed), LDA Tower (40 floors, approved), Bank Square Gulberg (vision), Pace Circle and Hyatt Regency and Tricon Corporate Tower.

The economy is also enhanced by Lahore's historic and cultural importance. Being the capital of the largest province in Pakistan brings the city one of the largest development budgets in the country.


  

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