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Traffic Congestion and Urban Planning: A Government Policy Perspective on Market Failure in Major Pakistani Cities

Muhammad Shaharyar, Hamna Mohsin
Abstract: Lahore has expanded road and mass-transit capacity, yet congestion remains widespread. This study explains that mismatch by asking whether public policy corrects the divergence between private travel decisions and their social costs. It uses a qualitative, document-based case study of government plans, operational records, census evidence, official reports, and peer-reviewed research published between 2010 and July 2026. Market Failure Theory supplies the central evaluative test; Rational Choice, Urban Land Use, and Institutional theories explain the behavioral, spatial, and implementation mechanisms. Three findings emerge. Metrobus, the Orange Line, and feeder services improve corridor access, but available sources do not demonstrate a citywide reduction in congestion, while delay, parking, and emissions remain weakly managed or priced. Outward development continues beyond transit reach, generating car-dependent trips and diluting corridor investment. Fragmented mandates also separate transport, land-use, parking, and enforcement decisions. These findings support a sequenced policy package: improve feeder and pedestrian access, reform parking, implement station-area transit-oriented development, establish metropolitan coordination and shared evaluation, and only then pilot congestion pricing where credible alternatives exist. The study’s practical contribution is an integrated framework for judging whether infrastructure changes accessibility, external costs, and travel behavior at city scale, with transferable lessons for other rapidly motorizing Pakistani cities.
Keywords: Lahore; traffic congestion; market failure; urban planning; public policy governance
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