Islamabad, July 24, 2025: The Punjab government has decided to build the Yellow Line underground trackless tram project along Lahore’s Canal Road.

As per news sources, officials confirmed that the Lahore Development Authority (LDA) and National Engineering Services Pakistan (NESPAK) have started working on the design and cost estimate for the project. This tram line will go from Thokar Niaz Baig to Harbanspura.

Officials shared that the new underground tram system will not harm any trees or green spaces. The tram will not have tracks and will follow a design similar to the Orange Line stations on Mall Road. It will run under the Canal Road using a “cut and cover” method.

READ MORE: Route Announced for Pakistan’s First Electric Tram 

For construction, both sides of Canal Road will be widened by 12 to 14 feet. A smooth underground path will be made for the tram and once it is done, the road will be restored and opened again for normal traffic.

The Chief Engineer of LDA said the earlier plan to build the Yellow Line along the road would have cost around Rs. 80 billion. The new cost for the underground option is now being calculated.

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