Economic Impacts of Lda Commercialization Policy, 2011

ECONOMIC IMPACTS OF LDA COMMERCIALIZATION POLICY, 2011
(Case Study of Gulberg Lahore)
Session 2008-2012
Project Advisor
Prof. Dr. Ihsan Ullah Bajwa
Researcher
Muhammad Umair
2008-CRP-30
Hassan Ali
2008-CRP-46
DEPARTMENT OF CITY AND REGIONAL PLANNING

UNIVERSITY OF ENGINEERING AND TECHNOLOGY, LAHORE
2012
APPROVAL SHEET
ECONOMIC IMPACTS OF LDA COMMERCIALIZATION POLICY, 2011
(Case Study of Gulberg Lahore)
By
Muhammad Umair
2008-CRP-30
Hassan Ali
2008-CRP-46
Thesis
Submitted to the Department of City and Regional Planning

University of Engineering & Technology, Lahore
In partial fulfillment of the
Requirements for the Degree of
Bachelors of Science in
City & Regional Planning
Thesis approved on
Prof. Dr. Ihsan Ullah Bajwa

Supervisor/Internal Examiner
Table of Contents
LIST OF TABLES........................................................................................................................VII
LIST OF FIGURES....................................................................................................................VIII
LIST OF MAPS.............................................................................................................................IX
DECLARATION............................................................................................................................X
DEDICATION...............................................................................................................................XI
ACKNOWLEDGEMENT...........................................................................................................XII
ABSTRACT................................................................................................................................XIII
LIST OF ACRONYMS..............................................................................................................XIV
CHAPTER 1 - INTRODUCTION.................................................................................................15
1.1.
PROBLEM STATEMENT..............................................................................................15
1.1.1.
INTRODUCTION TO RESEARCH PROBLEM...................................................15
1.1.2.
STUDIES ADDRESSING THE RESEARCH PROBLEM....................................16
1.1.3.
DEFICIENCIES IN EXISTING STUDIES............................................................16
1.1.4.
STATEMENT OF PURPOSE..................................................................................16
1.1.5.
IMPORTANCE OF STUDY...................................................................................17
1.2.
OBJECTIVES OF THE STUDY....................................................................................17
1.3.
SCOPE OF STUDY........................................................................................................17
1.4.
JUSTIFICATION OF STUDY........................................................................................18
1.5.
LIMITATIONS OF THE STUDY...................................................................................18
1.6.
RESEARCH METHODOLOGY....................................................................................19
1.6.1.
SELECTION OF RESEARCH TOPIC...................................................................19
1.6.2.
LITERATURE REVIEW.........................................................................................19
1.6.3.
SELECTION OF CASE STUDY AREA................................................................20
1.6.4.
DATA COLLECTION.............................................................................................20
1.6.4.1.
PRIMARY DATA.............................................................................................21
1.6.4.2.
SECONDARY DATA.......................................................................................21
1.6.5.
SAMPLE SIZE........................................................................................................21
1.6.5.1.
SAMPLING TECHNIQUE..............................................................................21
1.6.6.
DATA ANALYSIS...................................................................................................21
1.6.7.
CONCLUSIONS AND RECOMMENDATIONS...................................................22
1.6.8.
THESIS COMPILATION........................................................................................22
CHAPTER 2 - COMMERCIALIZATION....................................................................................23
2.1.
COMMERCIALIZATION POLICIES...........................................................................23
2.2.
COMMERCIALIZATION POLICY 1993.....................................................................23
2.3.
COMMERCIALIZATION POLICY ISSUES................................................................28
2.4.
COMMERCIALIZATION POLICY 2011......................................................................30
CHAPTER 3 - LITERATURE REVIEW......................................................................................34

3.1.
REQUIREMENT OF LITERATURE REVIEW............................................................34
3.1.1.
3.2.
CHARACTERISTIC OF GOOD LITERATURE REVIEW...................................34
CASE STUDY OF TORONTO CENTRAL BUSINESS DISTRICT............................34
3.2.1.
INTRODUCTION TO TORONTO CENTERAL BUSINESS DISTRICT............35
3.2.2.
ECONOMIC IMPACTS OF TORONTO CENTERAL BUSINESS DISTRICT. . .36
3.3.
CENTRAL BUSINESS DISTRICT AUCKLAND NEWZELAND..............................37
3.3.1.
ROLE OF CENTRAL BUSINESS DISTRICT.......................................................37
3.3.2.
STRUCTURE OF CENTRAL BUSINESS DISTRICT ECONOMY.....................38
3.3.3.
EMPLOYMENT......................................................................................................38
3.3.4.
EDUCATION SECTOR..........................................................................................40
3.3.5.
COMPARISON WITH REGIONAL CENTERAL BUSINESS DISTRICTS........41
CHAPTER 4 - ANALYSIS............................................................................................................43
4.1.
ANALYSIS OF LAHORE DEVELOPMENT AUTHORITY COMMERCIALIZATION

43
4.2.
DIRECTOR COMMERCIALIZATION:........................................................................43
4.2.1.
COMMERCIALIZATION POLICY.......................................................................43
4.2.2.
MAIN CONSIDERATIONS...................................................................................44
4.2.2.1.
MARKET TRENDS.........................................................................................44
4.2.3.
EFFET ON SOCIAL LIFE......................................................................................44
4.2.4.
IMPLEMENTATION..............................................................................................45
4.2.5.
REVENUE GENERATION....................................................................................45
4.2.6.
REVENUE UTILIZATION.....................................................................................46
4.2.7.
PROBLEMS DUE TO COMMERCIALIZATION.................................................46
4.2.8.
BUSINESS GENERATION....................................................................................47
4.2.9.
FEASIBILITY STUDIES........................................................................................47
4.2.10.
PRE AND POST COMMERCIALIZATION TRENDS......................................47
4.2.11.
PROCEDURE OF COMMERCIALIZATION....................................................48
4.2.12.
ILLEGAL COMMERCIALIZATION.................................................................48
4.3.
TRADERS POINT OF VIEW.......................................................................................49
4.3.1.
FACTORS MOTIVATED FOR SETTING UP BUSINESS....................................49
4.3.2.
INCREASE IN BUSINESS ACTIVITY.................................................................50
4.3.3.
ECONOMIC SITUATION OF COUNTRY VS BUSINESS ESTABLISHMENT.51
4.3.4.
INFRASTRUCTURE FACILITY...........................................................................52
4.3.5.
MANAGEMENT ISSUES......................................................................................52
4.3.6.
EMPLOYMENT GENERATION:..........................................................................52
4.3.7.
TAX COLLECTION...............................................................................................54
4.3.8.
OPINION ON SPENDING THE REVENUE COLLECTED.................................54
4.3.9.
AWARENESS ISSUES...........................................................................................55
4.4.
LAND USE PROFILE....................................................................................................56
4.5.
RECLASSIFICATION PLAN OF GULBERG LAHORE.............................................72
CHAPTER 5 - CONCLUSIONS...................................................................................................73
CHAPTER 6 - RECOMMENDATIONS.......................................................................................74
BIBLIOGRAPHY..........................................................................................................................75
ANNEXURE.................................................................................................................................76
LIST OF TABLES
TABLE 2.1: LIST OF ROADS/AREAS UNDER THE PREVIEW OF HLDC.........................................................25
TABLE 2.2: LIST OF ROADS APPROVED BY LDA FOR ALLOWING CHANGE OF USE...................................25
TABLE 2.3: LIST OF ROAD APPROVED BY EX-MCL FOR ALLOWING COMMERCIALIZATION/ CHANGE OF
USE...................................................................................................................................................27
TABLE 2.4: RECOVERIES OF COMMERCIALIZATION FEE BY LDA & EX-MCL...........................................28
TABLE 3.1: EMPLOYMENT COMPARISON OF MAJOR CITIES OF NEW ZEALAND.........................................42
TABLE 4.1: LAND USE DISTRIBUTION OF GULBERG LAHORE....................................................................58
TABLE 4.2: LAND USE DISTRIBUTION OF ALI ZEB ROAD GULBERG LAHORE............................................61
TABLE 4.3: LAND USE DISTRIBUTION OF HALI ROAD GULBERG LAHORE.................................................63
TABLE 4.4: LAND USE DISTRIBUTION OF M M ALAM ROAD GULBERG LAHORE.....................................65
TABLE 4.5: LAND USE DISTRIBUTION OF STADIUM ROAD GULBERG LAHORE..........................................67
TABLE 4.6: LAND USE DISTRIBUTION OF GURUMANGET ROAD GULBERG LAHORE..................................69
TABLE 4.7: LAND USE DISTRIBUTION OF MAIN BOULEVARD GULBERG LAHORE......................................71
list of figure
FIGURE 4.1: LDA REVENUE COLLECTION..................................................................................................46

FIGURE 4.2: FACTORS FOR SETTING UP BUSINESS.....................................................................................50
FIGURE 4.3: INCREASE IN BUSINESS ACTIVITY..........................................................................................51
FIGURE 4.4: EMPLOYMENT GENERATION...................................................................................................52
FIGURE 4.5: REVENUE SPENDING...............................................................................................................55
FIGURE 4.6: PUBLIC AWARENESS...............................................................................................................56
FIGURE 4.7: PERCENTAGE OF LAND USES OF GULBERG SCHEME LAHORE.................................................59
FIGURE 4.8: PERCENTAGE OF LAND USES OF ALI ZEB ROAD GULBERG LAHORE......................................61
FIGURE 4.9: PERCENTAGE OF LAND USES OF HALI ROAD GULBERG LAHORE...........................................63
FIGURE 4.10: PERCENTAGE OF LAND USES OF M M ALAM ROAD GULBERG LAHORE...............................65
FIGURE 4.11: PERCENTAGE OF LAND USES OF STADIUM ROAD GULBERG LAHORE...................................67
FIGURE 4.12: PERCENTAGE OF LAND USES OF GURUMANGET ROAD GULBERG LAHORE..........................69
FIGURE 4.13: PERCENTAGE OF LAND USES MAIN BOULEVARD GULBERG LAHORE...................................71
LIST OF MAPS
MAP 3.1: MAP OF TORONTO CBD .35
MAP 3.2: MAP OF AUCKLAND CBD...........................................................................................................37
MAP 4.1: LAND USE MAP OF GULBERG LAHORE......................................................................................57
MAP 4.2: LAND USE MAP OF ALI ZEB ROAD GULBERG LAHORE..............................................................60
MAP 4.3: LAND USE MAP OF HALI ROAD GULBERG LAHORE...................................................................62
MAP 4.4: LAND USE MAP OF M M ALAM ROAD GULBERG LAHORE........................................................64
MAP 4.5: LAND USE MAP OF STADIUM ROAD GULBERG LAHORE............................................................66
MAP 4.6: LAND USE MAP OF GURUMANGET ROAD GULBERG LAHORE....................................................68
MAP 4.7: LAND USE MAP OF MAIN BOULEVARD GULBERG LAHORE........................................................70
MAP 4.8: RECLASSIFICATION MAP OF GULBERG LAHORE.........................................................................72
DECLARATION
We hereby, declare that this research is purely the creation of our own efforts and has not been
published anywhere else in the past. The matter quoted in this text has been properly referenced
and acknowledged.
&
Muhammad Umair
10
&
Hassan Ali
DEDICATION
We dedicate this to our Almighty ALLAH, who guide and never leave us in making this research.
This thesis is also dedicated to our parents, who taught us that the best kind of knowledge to
have is that which is learned for its own sake. Moreover, they also taught us that even the largest
task can be accomplished if it is done one step at a time. It is also dedicated to our beloved
brother and sisters. It is their affection and support not only to complete this research but also
their tap on our back that we can do it which gives us confidence and commitment.
11
ACKNOWLEDGEMENT
This research work is the product coordination, contribution and guidance of many individuals.
But we will like to thank ALLAH who granted us courage, wisdom and consistency to
accomplish this project in time.
First of all, we like to pay our gratitude to supervisor, Dr. Ihsan Ullah Bajwa whose guidance and
supervision from the inception of this research gives us extra-ordinarily experiences throughout
the wok. Moreover, his availability seeking help whenever we want. Beside this, we would like
to acknowledge all other teachers who teach us through the academic year how carry out the
research and work with devotion.
Secondly, we are thankful to Khalid Mehmood Sheikh (Director Commercialization, LDA) for
giving us his precious time beside his busy schedule. Moreover, the residents and other
respondents for providing us the valuable and desired information to streamline our research
work in the right direction.
We are also regarding all our friends and class fellows, who make us, believe that we can do this.
Especially, Hamid Arshad, Ijaz Iqbal, Sidra Asif, Masooma Akram and Maryiam Kamzi for
being there with us at every step.
Lastly, we pay our special thanks to Abdul Majeed (Abdul Majeed & Associates) for being so
friendly and helped us as possible as he can, to conduct our research purposefully.
Muhammad Umair & Hassan Ali
12
ABSTRACT
Commercial areas play an important role in the economy of any city. For boosting the economy
of Lahore city Lahore Development Authority declared the area of Gulberg as future CBD of
Lahore in 2011. This policy initiated much criticism due to the problems generated by this
commercialization policy but the major aspect of economic activity remained in the background.
Exploring the economic impacts of commercialization policy is a major research question which
is being addressed in this research work.
For research purposes, establishment of link with the past knowledge was done by literature
review in which the examples from around the globe regarding the economic impacts of
commercial areas were studied. Research methodology and layout of important indicators and
questions were developed. In the research methodology, due consideration was given to the fact
that both benfecries and affected stakeholders must be consulted to get an better over view of the
situation prevailing in the area. This will also help to generalize the results more logically. For
this purpose major stakeholders were interviewed to get the primary information. Land use maps
were also developed for the area of gulberg and analysis were performed on them to observe the
changes that will take place over the period of time. Tables and graphs were deveopled for maps
and the information gathered from the field to analyse the existing situation regarding the
economic impacts of commercialization policy 2011.
On the basis of the study, it was concluded that the commercialization policy has helped to
increase the business activity, employment opportunities in gulberg Lahor e and at the same time
increasing revenue for Lahor e Development Authority. Overall the commercialization policy has
helped to trigger the economic activity in the city. On the basis of findings, it is also
recommended that additional areas of revenue generation msust be explored and new
commercial areas must be set up to meet the increasing demands of public rather than changing
the land use of existing residential area.
13
LIST OF ACRONYMS
BRT
Bus Rapid Transit
CBD
Central Business District
CNG
Compressed Natural Gas
GIS
Geographic Information System
HLDC
High Level Design Committee
IMPL
Integrated Master Plan Lahore
LDA
Lahore Development Authority
Marla (225 sq ft of land in Lahore city)
MCL
Municipal Cooperation Lahore
NOC
No Objection Certificate
PKR
Pakistani Rupee
14
CHAPTER 1 - INTRODUCTION
1.1.
problem statement
Problem statement is categorized under diverse sections to clearly differentiate between different
components of the problem statement which includes introduction to the research problem,
deficiencies in the past studies, the statement of the purpose and the importance of the study.
1.1.1. introduction to research problem

Cities are economic drivers the very core of economic growth and development (BUCHNAN,
C., 2008) and the city of Lahore is no exception. It would be worth noting that earnings in cities
are around 33% more than those in non-urban areas (GLAESER, E. and Mare, D., 2001) .
Around the world, the agencies responsible for development and management of city functions
strive hard to boost the economy of cities. The prime mover of economy in the urban settlements
is its Central Business District (CBD) and the commercial activity taking place in the CBD. The
CBD is a major employment generation area for urban settlements apart from providing
economic services to the residents of the city. The existing CBD of city of Lahore is located in
the Wall City and around Mall Road. The furnish CBD has become incapacitated to cater the
demands of growing population.
Keeping in view the demand for establishment of a new CBD, the Lahore Development
Authority (LDA) has declared the area of Gulberg as the new CBD of Lahore. This has been
achieved by allowing commercial activity on the major traffic corridors of Gulberg area. This
establishment of commercial land uses along major roads, or it may be termed as change in land
use, was allowed under the new commercialization policy of LDA, 2011. This commercialization
policy is under criticism from the day of its inception by different segments of the society due the
problems that have been attributed to the commercialization policy, but this is only one side of
the picture. The other side of picture has been intentionally or unintentionally been kept out of
sight, i.e. the economic impact that this commercialization policy has on the local as well as the
national economy. The answer to this question becomes much more significant in the current
dismal economic situation of Pakistan. In this research work this question will be addressed. It
will add another dimension to the thinking of general public and gives a more insight to the
policy makers regarding the output of commercialization policy.
1.1.2. studies addressing the research problem

Studies in the past have been carried out by different professionals regarding commercialization
policy of LDA. Hameed and Nadeem (2005) worked on the issue of haphazard
commercialization in the city of Lahore. They termed it as a potential threat to the sustainable
commercialization in the city of Lahore. They also mentioned that the rate of commercialization
is proceeding at a fast pace and have trickled down from unplanned areas to planned
neighborhoods. Anwar (Not Dated) also worked on a similar phenomenon in Karachi regarding
the commercialization of major traffic corridors, namely Sharh e Faisal.
1.1.3. deficiencies in existing studies

Deficiencies in the existing studies relating to a specific research question are a major motivator
to carry out further research on a specific topic. The study by Anwar (Not Dated) regarding
commercialization of major traffic corridors in the city of Karachi was narrowly focused upon
the lack of governance on part of the local authorities but he didnt talk about the economic
activity being generated by this commercialization. Similarly, Hameed and Nadeem (2005) also
hold commercialization responsible as a potent threat to environment as well as a dangerous
phenomenon for the sustainable commercialization in the city of Lahore.
1.1.4. statement of purpose

The study is exclusive in nature as previously the studies carried out regarding
commercialization policy considered the aspects of environmental degradation, traffic
congestion, chocked sewerage system and similar aspects like them but the economic perspective
was not given due importance. This study will help in better decision making to the policy
makers that how economic benefits of commercialization can be enhanced and at the same time
the issues and problems could be eliminated or might be reduced to minimum level.
1.1.5. importance of study
For any policy or action to determine its success or failure rests upon looking at its both positive
and negative features and the results that action yields in a specific working environment. This
study is important as it can bring to light the very foundation of the commercialization policy i.e.
business friendly and promoting economic activity in the city of Lahore. So far only one
dimension of the commercialization policy have been covered and that is the issues that has
affected the life of general public either by traffic congestion or burden on the infrastructure
facilities.
By looking at the positive side of the picture of commercialization policy, not only it will help to
mitigate the issues and problems, but also will ensure in future that any formation of policy
regarding commercialization will take into due consideration the positives and try to reduce the
negatives of commercialization policy.
1.2.
objectives of the study
The study is carried out with the following objectives:
To explore the economic benefits of LDA commercialization policy

To determine the outcomes of LDA business friendly approach adopted for
commercialization policy.
To look at the financial benefits to LDA due to commercialization policy.
To suggest measures for the improvement of LDAs commercialization policy from
economic point of view.
1.3.
scope of study
The research work is carried out to evaluate the economic benefits and impacts of LDAs
commercialization policy 2011. For this purpose the study area of Gulberg has been selected
which has also been declared by LDA as new CBD of Lahore. The study area provides a wide
range of opportunity to assess the economic impacts that have been generated by the
commercialization policy of LDA.
For the assessment of economic benefits, the two main stakeholders as well as the beneficiaries
were sorted out to collect information from. These beneficiaries include the LDA and the traders
those who have benefited from the commercialization policy in the recent past.
1.4.
justification of study
LDAs commercialization policy announced in July 2011 has been under furious criticism from
the first day, from professionals, from different walks of life. Alam (2009) pointed out that the
[then] acting director-general of the Punjab Environmental Protection Agency pointed to the
commercialization of Lahores roads as a major factor responsible for the citys worsening traffic
congestion and terrible air pollution. The commercialization policy has also been taken to the
court by civil society members. In the recent past change in political regime has swayed the
commercialization to both extremes from high rise commercial plazas to the other extreme of
their demolition. Most of the demolition of high rise buildings being built for commercial usage
in the city of Lahore were said to be politically motivated.
This study is aimed at bringing to light the economic benefits and positive side of picture of
commercialization policy. The major reason for conducting this study is the current scenario of
economic situation of Pakistan, where power shortages have brought the industrial sector to
almost complete halt. Reports have pointed out that Foreign Direct Investment (FDI) has shown
downward trend at an alarming rate of 62.5% during July 2011 to May 2012.
1.5.
limitations of the study
The literature on commercialization policy was not readily available. The only literature
available in the context of Pakistan is from the planning agencies and the reports they
have prepared for the implementation of the policy.

The collection of information from traders was a hard nut to crack as they were reluctant
to share any information regarding their business expansion and fulfilling the legal
requirements of the local authorities.
1.6.
research methodology
Research methodology is a systematic way to solve a research problem (KUMAR, R, 2008).

Research methodology is a general but a clearly defined structure comprising of different steps
that are carried out over a course of time to address a specific research question and to reach
logical conclusions in the light of set objectives. The nature of study and the objectives which are
the main driving force while establishing the research methodology.
The research methodology used in this research work comprises of following steps:
1.6.1. selection of research topic

The main starter for any research work is the topic or research question to be answered. The
selection of research question is governed by the interest of the researcher as well as the
prevailing situation in the society.
While skimming through different newspapers and other sources of information it was learned
that the issue of commercialization in Lahore is a matter of much heated debate over a long
period of time. Different objections, raised by different segments of society on the
commercialization policy stimulated the mind to research this issue which could be helpful for a
larger segment of society.
When the idea was shared with the project advisor, he helped us to narrow down the focus of
study from a much larger context of whole commercialization policy to the economic impacts
that have been visible due to commercialization policy. This narrowing down of research topic
also helped to put the study in the existing economic situation of the country.
1.6.2. literature review

Literature review is an important feature of any research work. The purpose is to provide the
background and justification for the research undertaken (BRUCE, C.S., 1994). Literature review
section also helps to demonstrate the familiarity of researcher with the existing knowledge in the
field of research.
Literature review was carried out extensively for the research work from electronic journals,
newspaper clippings, books, reports that were accessible. The accessibility was a major issue
during the exercise of literature review.
As commercialization,-conversion of land use,-is a unique practice, the literature relating to the
domestic context of Pakistan was hard to find. The available literature was in form of reports or
articles from the international journals were main sources of literature available on the topic.
Literature specifically addressing to economic impacts of commercialization was hard to come
by as studies in past were not carried out with the specific objective of economic impact as
mentioned earlier.
1.6.3. selection of case study area

The selection of case study area is an important aspect in a research project. Case study area
must be selected carefully so that the required information can be obtained from the case study
itself. This will further help on to establish more general results.
The case study area for this research project is selected is Gulberg scheme in the heart of Lahore.
The main consideration behind the selection of Gulberg area is that it has been declared the
future CBD of Lahore city and the trend of commercialization in this area is far much higher as
compared to other areas of Lahore where commercialization has been allowed. The area of
Gulberg has been hub of commercial activities for over a decade and has become a new outlook
of Lahore city which is different from what we observe in the wall city and its adjoining areas
which were once the main commercial hubs of the metropolitan.
The area of Gulberg was also selected on the consideration that the extensive studies were
carried out by LDA, in the initial planning stage, would help in getting the required information.
1.6.4. data collection

Data collection is a fundamental component of a research thesis. Data collection enables to
answer a specific research question or to address a hypothesis that has been developed to carry
out a particular research. The data collected for any research project is of two types:
1.6.4.1.
PRIMARY DATA
Data collected directly from the field by the researcher himself is termed as primary data.
Primary data is raw in nature and is required to be processed to gain maximum information from
this raw data.
In this research project the primary data which has been collected from the field comprises of an
interview with the Director Commercialization LDA and data collected from traders in the case
study area. During the data collection is ensured that while collecting data from traders that they
must have benefited from LDAs; commercialization policy in the recent past. This standard
makes the primary data collection more cumbersome.
1.6.4.2.
SECONDARY DATA
The data which is already available in form of reports of journals which has been published is
termed as secondary data. Secondary data can be directly used as information as it has already
been sorted out.
The secondary data collection for this research project includes the reports published by LDA
and the point of view of civil society members published at different forums.
1.6.5. sample size

The sample size was limited to, for collection of data from traders or the immediate
beneficiaries, 25. This number was selected as to give a reasonable amount of information so that
conclusions can be based upon them. Time constraint was a major determining factor in a smaller
sample size.
1.6.5.1.
SAMPLING TECHNIQUE
The sampling technique of simple random sampling was used to look for the best possible
respondent among the variety of traders.
1.6.6. data analysis

The data collected from both primary and secondary sources was analyzed logically to deduce
results. Geographic Information System (GIS) based results were used to create land use profile
of the area and running down different analysis with the help of the said software.
Table and graphs are prepared in order to get maximum information out of the studies carried out
during data collection.
1.6.7. conclusions and recommendations

Major inferences which are drawn from the whole study are documented after the interpretation.
Main parts of the study are summarized at the end in the conclusion section. In the light of
results, findings and conclusions several recommendations have been made which can be applied
to improve the commercialization policy and economic benefits can be enhanced as a result.
1.6.8. thesis compilation

The whole thesis is compiled with the necessary information in a report form and hence to
disseminate the research work. Different parts of the thesis are arranged in the form of chapters
as well as annexure for other reference information.
CHAPTER 2 - COMMERCIALIZATION
2.1.
Commercialization policies
The practice of commercialization has been carried out by the local authorities in different times.
The commercialization policies are all aimed at ensuring better services and facilities to the
residents of the city for carrying out economic activity and daily life functions.
Below is provided with an insight of commercialization policy of 1993 and 2011 along with the
vision that has been put forward in the Integrated Master Plan of Lahore (IMPL) 1996-2021.
2.2.
Commercialization Policy 1993
The policy was applicable to all urban local councils and developments authorities in Punjab. It
calls for prior identification of areas by the Commercialization Committee duly constituted under
the policy to process and decide commercialization for residential properties. Other salient
features of the policy inter-alia include:
i.
Submission of
No Objection Certificate (NOC) from the owners of the adjoining
ii.
properties
Lump sum payment of conversion fee at the rate of 25% of the prevailing market rate of
iii.
commercial plots
Temporary conversion extendable annually for a maximum period of 10 years for clinic,
iv.
schools, banks and offices on payment of annual fee of less than 3% of conversion fee.
Exemption from submission of NOC for residential buildings/properties used for
v.
vi.
government/ autonomous/semi-autonomous offices.

Restriction on partial conversion.
Regularization of an existing illegal commercialization and imposition of 10% surcharge
vii.
in addition to payment of prescribed fee.

A set back of not less than 15ft for plots measuring 10 Marla and above and 10ft for plots
of less than 10 Marla area.
Both Lahore Development Authority (LDA) and ex-Municipal Corporation Lahore (MCL) have
been responsible for enforcement of the policy in their respective area of jurisdiction. So far the
LDA has approved 29 roads for allowing commercialization as against 62 by the ex-MCL (Table
2.1 and 2.2). The receipt through recovery of commercialization fee during the past years (Table
2.4) shows that organized commercialization process could also substantially contribute towards
the enhancement of municipal revenue.
The 1993 Commercialization Policy provided a useful direction and basis to deal with the
problems of illegal conversion of residential properties. Considering the policy as rigid and
somewhat harsh. The government had approved amendments to make it what they call people
friendly. The new Policy called Change in Land Use (Commercialization) Policy, 2001
contains the following important ingredients:
i.
iv.
The commercialization fee in urban area reduced to 20% of commercial value of the land
based on valuation tables.
Fee for rural areas fixed at 20% of average sale price of preceding 12 months.
Payment of fee in three equal installments spread over a period of one year allowed
subject to deposit 50% of the fee as down payment. Failure to deposit installment(s) even
after a grace period of 3 months renders forfeiture of the deposited amount.
A 5% rebate allowed if the payment of fee is made in lump sum and within period of 4
v.
months.
Submission of NOCs from the neighbors no more required on roads selected and declared
vi.
for commercialization after inviting objection through press.

In addition to some uses laid in 1993 Policy, facility of annual/temporary
ii.
iii.
commercialization extended to uses like guest houses, youth hostels, gymnasiums,

vii.
museums, health centers, restaurants and auditoriums.

Partial commercialization disallowed but regularization
viii.
commercialized premises the specific areas has been made permissible.

Commercialization fee for educational, health and information technology institutions
ix.
reduced by 50%.
On individual merits the conversion of land use for projects run by NGOs, trusts,
of
existing
partially
charitable organizations operating on no profit and non-commercial basis and exempted

from income tax shall also be exempted by the Government from payment of
x.
commercialization fee.
Action in illegal cases to be taken under the law and shell also include sealing if
premises.
Table 2.1: List of Roads/Areas under the Preview of HLDC
S.No
Name of Areas
S.
Name of Areas
.
1.
2.
3.
4.
5.
6.
Shahrah-e-Quaid e Azam
Egertion Road
Empress Road
Davis Road
Lawrence Road
Race Course Road
7.
8.
9.
Lower Mall
Multan Road
Jail Road
No.
10.
11.
12.
13.
14.
Ferozepur Road
McLeod Road
Shalimar Link Road
Canal Bank Road
Kashmir
Egerton
16.
17.
Develpoment Scheme
Lytton Road
Queens Road
Table 2.2: List of Roads Approved by LDA for Allowing Change of Use.
Road
Table 2.3: List of Road Approved by Ex-MCL for Allowing Commercialization/ Change of Use
Table 2.4: Recoveries of Commercialization Fee by LDA & Ex-MCL
2.3.
COMMERCIALIZATION POLICY ISSUES
According to the Punjab Commercialization of Property Rules, 2001, existing unauthorized

commercialization is being regularized by the commercialization Committee on payment of the
prescribed commercialization fee plus 10% surcharge. This is being done subject to the condition
that there is:
a) No encroachment on public utility sites,
b) Violation of building bye-laws if any, has been compounded; and
c) Fee due from an owner for parking plaza where one has been constructed by a
development authority has been deposited by him.
Commercialization is a sensitive issue. Excessive and inappropriate commercialization may lead
to such changes in land use and urban activities, which may harm the efficient functionality of an
urban centre. As mentioned in Volume-I of (IMPL) of this report, the commercialization policy
presently in force suffers from lack of details and is rigid in character. It must also take into
account the jurisdictional requirements of City District being contemplated under the new Local
Government System. Following changes in the existing policy may provide the desired
flexibility and make it more meaningful:
i.
It must be obligatory for the Commercialization Committee to identify areas where

request for change in land use can be considered by it. In other words indiscriminate
commercialization must not be allowed to take place anywhere in the City District.
ii.
The requirement for providing NOCs from the neighbors may be dispensed with as it
leads to black mailing and sometimes causes prolonged litigation amongst its parties.
Instead, the Commercialization Committee may invite objections from the public and
iii.
dispose them off before an area is finally identified by it for allowing commercialization.
After receipt of 50% of the fee as down payment, the balance 50% may be made payable
iv.
in 3 installments spread over a period of one year.

There may be no need to reduce the existing rate of fee for urban planned/ built up areas.
A rebate of say 5% to 10% may however be allowed in case the payment of fee is made
v.
in lump sum.
Partial commercialization should be restricted to rural settlements and small properties
(below 5 Marla) allotted to low income groups in residential colonies as may be
vi.
identified by the Commercialization Committee.

The rate of commercialization fee for rural settlements may be kept less than the rate of
urban areas (say 20% instead of 25%) and it should be related to the yearly average sale
vii.
price of land within the rural settlement.

The scope of uses permissible for temporary or annual commercialization is enhanced to
include offices, bank, hospitals, clinics, educational institutions, information technology
centers, guest houses, hostel, gymnasiums, museums, art galleries, beauty clinics/parlors
subject to production of NOC from the neighbors and provision of prescribed parking
facility. The layout of the residential premises and also the elevation and change on the
viii.
structural design with a view to alter the nature of building may not be done.
The rate of fee for permanent commercialization in respect of educational, information
ix.
technology related institutions and hospital/clinic need to be lowered down substantially.

To manage the construction on properties under this policy, specific provisions should be
made in Building Regulations to regulate building lines, heights, mass and the parking
x.
requirements of the commercial buildings.

Petrol/CNG Stations may be located only along a primary/secondary road having right of
way of at least 30 meters. These should not be located within one to two km of an
existing petrol /CNG station, unless on the opposite side of a primary road with minimum
50 meters right of way and having a diving median strip. No petrol/CNG station may be
xi.
located within 100m of a crossing of two primary roads or a roundabout.

To control illegal commercialization, power to seal the premises may be assigned to the
controlling authority by amending the relevant laws, if necessary.
xii.
To Commercialization Committee should be re-constituted so as to include the local area
xiii.
town planner, traffic and infrastructure engineers on its membership.

Apart from the commercialization of Walled City, various roads have been identified in
six towns for the purpose of industrialization and commercialization and are divided in
following categories:
a. Roads for industrialization
b. Roads for mixed commercial and industrial uses
c. Roads for commercialization
Roads for the above categories were identified on close coordination with the concerned officials
of City Government and are listed in Annex to Chapter 19(IMPL).
It however needs to be stressed that change of existing land use to commercial use will only be
permitted subject to payment of applicable commercialization fee and/or other departmental
charges, if any. This will not be applicable in case of existing commercial areas/ markets which
have already been regularized upon receipt of commercialization fee by the concerned
authorities.
The commercialization fee will also not be applicable to those central areas which were declared
commercial as per previous Master Plan for Lahore.
2.4.
Commercialization policy 2011
In the statement issued by LDA through notification is:

The policy has been devised after consultations with all stakeholders, including public
representatives, trade organizations, shopkeepers, economic experts and architects and the
District Planning and Design Committee.
Any parcel of land can be converted from residential to commercial land use by paying 20% of
the market value of the land. The rate of land will be determined by the valuation table for the
respected area.
The new business friendly commercialization policy has been issued for 58 roads situated in
various housing schemes as well as the area controlled by the LDA.
The press release says unprecedented relaxations and incentives had been given to the builders
for construction of commercial buildings and to the businessmen for starting new ventures in the
new policy.
The new policy envisages permission for all types of business activity on roads allowed for
commercialization, wavier on the conditions regarding construction of multi-storey buildings
with basements, size of plots, green belt, parking and open space etc.
List of roads upon which the commercial activity has been allowed under commercialization
policy 2011 are given as under:
Abul Hassan Isphahani Road, Faisal Town
Al Madina Road, Township
Approach Road Shadbagh (From Tajpura Mor to Gol Ground
Shadbagh)
Bagrian Road, Township
College Road Gulberg (Segment 1)
College Road, Township (Ghazi Road to Plot No 1 and 16-5-C-1
Township)
Defence Road (Multan Road to Raiwind Road)
Ferozepur Road (Segment 5) (Chungi Amar Sidhu to Suay Asil)
Ferozepur Road (Segment)
Firdous Market Road
Ghalib Road (Chen One Road) Gulberg (Segment)
Hali Road (Segment)
Jail Road (Ghous-ul-Azam Road)
Link M. M. Alam Road, T Block
Link Main Market 1 (Shezan Side)
Link Main Market 2 (Auriga Side)

Link Road Main Boulevard Garden Town (Segment)
M. M. Alam Road
Main Boulevard Garden Town (Segment)
Main Boulevard Gulberg
Main Boulevard Shadman (Segment)
Main Boulevard Gulshan-i-Ravi
Main Boulevard, Johar Town (Canal Link Road up to Nursery
Chowk)
Main Boulevard, Johar Town (Doctors Hospital link road up to
bypass)
Main Boulevard, PIA Scheme (Wapda Roundabout to Hakam Chowk)
Main Boulevard, Samanabad
Maulana Shaukat Ali Road
Model Town Link Road
Multan Road (Yateem Khana Chowk to Defence Road)
Park Road(Ali Zaib Avenue) Gulberg
Part of Civic Center, Garden Town
Road behind Liberty Market
Shadman Part of Race Course Road
Shahra-e-Quaid-e-Azam (The Mall Road)
Stadium Road (Sharah-e-Noor Jehan)
Tariq Road Link M. M. Alam Road
Wahdat Road (Segment)
Zafar Ali Road
Detail specification and restriction of the above said roads are provided in Annexure.
CHAPTER 3 - LITERATURE REVIEW

3.1.
requirement of literature review
The review of relevant literature is nearly always a standard chapter of a thesis or dissertation.
The review forms an important chapter in a thesis where its purpose is to provide the background
to and justification for the research undertaken (BRUCE, C.S., 1994).
3.1.1. characteristic of good literature review

A good literature review requires knowledge of the use of indexes and abstracts, the ability to
conduct exhaustive bibliographic searches, ability to organize the collected data meaningfully,
describe, critique and relate each source to the subject of the inquiry, and present the organized
review logically, and last, but by no means least, to correctly cite all sources mentioned
(AFOLABI, M, 1992).
Although the practice of declaring an already residential area into a Central Business District
(CBD) by merely allowing a commercial land use or land use conversion from residential to
commercial along the major traffic corridors is a kind of practice that is not carried out in the
world but the impacts on the economy that is being generated remains uniform all around the
globe. For this purpose following case study is presented.
3.2.
case study of toronto CENTRAL business district
The study presented here discusses about the economic impacts of Toronto CBD. The study was
carried out in 2003 and addressed the economic changes that were brought away by the Toronto
CBD during 1970s and 1980s.
3.2.1. introduction to toronto centeral business district

The Toronto CBD is defined as south of Queen, north of Front, east of Simcoe Street and west of
Victoria Street geographically1. It occupies an area of about 0.7 square miles based on
1City of Toronto Planning Board, Central Area Plan Review, 1975c, Part 2: Area Plan for Downtown.
government official plan. The Toronto CBD is referred to the Toronto Financial District2. The
CBD is also popularly known as the central area, or downtown, whose definitions are different
from city to city. However in Torontos official planning, downtown is one part of central area
and financial district (i.e. CBD) is one part of downtown (See Figure)
Map 3.1: Map of Toronto CBD
CBD (Financial District), Downtown and Central Area Definition (CTPB, 1975a)3
As an important urban infrastructure system, the Toronto CBD plays a central role in the
economic development of Toronto and reaffirms Toronto's role as Canada's economic capital.
3.2.2. economic impacts of toronto centeral business district

The Toronto CBD accommodates the largest concentration of office employment within
Toronto. In 1999, office employment in CBD was almost 90% of the total employment in CBD
and the CBD had 43% of the Downtowns total office employment. From 1993 to 1999, total
office employment in the Downtown grew by 14.2%; however office employment in the CBD
grew by 31.3% (GHK, 2000). Toronto CBD is the office employment centre of the City.
2 City of Toronto Planning Board, Central Area Plan Review, 1975b, Part 1: General Plan.
3 City of Toronto Planning Board, 1975a, Economics of Agglomeration in the Central BusinessDistrict (Toronto).
The office market plays a key role in maintaining competitiveness for a (GHK, 2000). City
planners seek to attract firms to locate headquarters and branch offices in their cities and to
capture a growing market share of international business. For the city-region, firms provide
employment (both directly and through multiplier effects) and, possibly, help to retain capital. To
compete for financial and business service, a city must offer high quality office space for the
leading, large firms. It is also clear that the total stock of space plays an important role.
The larger the stock, the more firms and workers that can be accommodated and, hence, the more
economies and the benefits of agglomeration are likely to arise. Those cities with more advance,
adaptive systems will gain competitive advantage, altering the path of economic development.
3.3.
CENTRAL business district auckland newzeland
3.3.1. role of CENTRAL business district

It has been argued that each city has a unique role within a global, national and regional context
which needs to be recognized and strengthened through economic development strategies.
Global cities such as New York, London and Tokyo are centers of cultural innovation and
global-level specialized services which drive the global economy. National cities such as
Auckland resemble global cities but operate at a smaller scale as political, commercial or
cultural capitals. Regional cities such as Hamilton are smaller in size and sphere of
influence than national cities and form the traditional cores of local regions (RAINES, F.D.,
2000) The CBD can play a critical role in supporting a citys broader functions.
Map 3.2: Map of Auckland CBD
Source: The Auckland City Council 2002

CBDs worldwide play a key role in the function of cities and their importance has
increased with the growth of the knowledge economy and rise of the creative class. The
Auckland CBD economy currently plays multiple roles, providing a hub for professional
services, a centre for culture and recreation and a focal point for higher education, international
visitors and marine activities.
3.3.2. structure of CENTRAL business district economy

The CBD is the largest employment centre in the country with around 60,000 workers. Its
share of Auckland Citys and the regions employment has remained reasonably stable over the
past five years at 25% and 13% respectively. Property and business services are the largest
sector, employing just under a third of the workers (32.1%) in the CBD, followed by finance and
insurance (11.4%). Higher education is also a significant industry providing 5.7% of the CBDs
employment.
In a regional context, the CBD provides a disproportionately high number of jobs in insurance,
legal services, accounting services, the hotel industry, higher education, employment placement
services, local government administration and newspaper, printing and publishing.
In 2002, almost 8,500 businesses were located in the CBD representing 18 per cent of businesses
in Auckland City. Larger firms tend to locate in the CBD rather than elsewhere in the region but
most businesses are still predominantly small. Over the past 5 years, the CBD has seen the
strongest growth in those firms employing 50 to 99 people.
3.3.3. employment
The CBD is the single largest employment centre in Auckland City, the region and New
Zealand as a whole, with around 60,000 workers. In 2002, employment in the CBD represented
25 per cent of total employment in Auckland City and 13 per cent of the total within the region.
The CBDs share of Auckland Citys, and the regions, employment has remained reasonably
stable over the past five years. In terms of numbers, employment in the CBD grew by 10 per
cent between 1997 and 2002 with a gain of 5,620 workers. This is slightly above the 9 per cent
employment growth experienced by Auckland City as a whole and a little below regional growth
of 12 per cent.
The sectors showing the most significant growth within the CBD are culture and recreation,
property and business services, and restaurants and hotels. This growth has helped cement
the CBDs role in the regional economy as the home for professional services and as a centre for
recreation and leisure. It should be noted, however, that while culture and recreational services
have seen significant growth the sector still only accounts for 6 per cent of the CBDs total
employment. Property and business services, on the other hand, represent 32 per cent of the
employment in the CBD.
At a broad level, CBD employment is concentrated in the finance and insurance, and business
and property services areas, with these sectors accounting for 43.5 per cent of total employment
in the CBD.
Key points to note are that the CBD accounts for:
96 per cent of Auckland Citys jobs and 76 per cent of the regions jobs in
Insurance.
79 per cent of Auckland Citys jobs and 63 per cent of the regions jobs in legal
services.
accounting services
83 per cent of Auckland Citys jobs and 66 per cent of the regions jobs in the hotel
industry.
60 per cent of Auckland Citys jobs and 49 per cent of the regions jobs in higher
education.
employment placement services.

48 per cent of the regions jobs in local government administration.
46 per cent of the regions jobs in newspaper, printing and publishing.
3.3.4. education sector

The education sector in the CBD includes private secondary schools, private training
establishments (PTEs) and publicly owned tertiary institutions. PTEs include English language,
tourism, computer, business, and hairdressing, film and television schools. Publicly owned
tertiary institutions include the University of Auckland and AUT which dominate the education
sector in the CBD, both physically, and in terms of student numbers. The University of Waikato
Language Institute and the University of Otago have established campuses in the CBD although
they are small campuses in comparison. Overseas universities are also planning to establish a
presence in the CBD. Foreign Fee Paying Students (FFPS) have been the major source of
growth across the sector and the mature student market is becoming more of a focus. A large
proportion of the CBD acts as an education campus due to the sheer number and movement of
students.
In 2002, there were 97 education businesses in the CBD, excluding public tertiary education
providers, representing one per cent of total businesses in the area. This comprised 13 per cent of
education businesses in Auckland City and five per cent of those in the region. Between 1997
and 2001 the number of private education businesses in the CBD grew 18 per cent representing
15 new businesses.
In 2002, education businesses in the CBD employed 4,600 FTEs, comprising 7 per cent of the
total FTEs in the CBD. The CBD provides 30 per cent of education employment in Auckland
City and 15 per cent of such employment within the region. Education employment is
consolidating in the CBD, increasing by 29 per cent between 1997 and 2001 compared to a 15
per cent growth during the same period within the region as a whole.
The CBDs education scene is dominated by tertiary education with the CBD accounting for
almost half of the regions jobs in this sector. In 2001, the CBD hosted 69 tertiary institutions.
Almost half the tertiary institutions within the CBD are English language schools.
There were around 45,000 tertiary students enrolled at CBD institutions in 2001, comprising 70
per cent of the total in the Auckland region with the University of Auckland and AUT,
accounting for the bulk of the students.
The total economic contribution of the education sector to the CBD has yet to be quantified.
However, it has been estimated that expenditure at Auckland University contributes $3.1 billion
to the Auckland regions gross domestic product. (NZIER, 2002)
3.3.5. comparison with regional centeral business districts

Compared to some of the Australian CBDs, Aucklands CBD plays a broader and more
dominant role in its regional economy. In particular the Australian CBDs studied are more
specialized in the area of financial services. Wellingtons CBD employs almost as many workers
as Auckland and accounts for significantly more (32%) of its regions employment. Growth in
the key industry sectors of restaurants/hotels, property Business and culture and recreation
have been similar in all the CBDs studied over the last decade. Decline in the manufacturing
sector and the transport sector occurred in all the New Zealand CBDs over the 1991 2001 period
and to a lesser extent in the Australian CBDs.
Around 13 per cent of the Auckland regions full time employees are employed in the Auckland
CBD which is similar to the proportion of the Canterbury regions FTEs employed in the
Christchurch CBD. However, Wellingtons CBD is much more dominant employing around one
third of all employees in the Wellington region.
The Australian CBDs account for a lower percentage of regional employment as compared to
their New Zealand counterparts. This is due partly to different data definitions, and partly to the
smaller influence of Australian CBDs over their hinterland, due to the greater number of large
sub-regional CBDs in Australia.
Wellingtons CBD plays a more dominant role in its regional economy across a number of
industries as compared to Aucklands CBD. For example Wellingtons CBD contains 84% of the
regions employment in financial services, 50% of the regionscommunications employment and
nearly 40% of the regions employment in culture and recreation. Wellingtons CBD is of a
similar size to Auckland in terms of total employment and it is interesting to note that
Wellington has more people employed in the finance and insurance sector as compared to
Aucklands CBD.
Table 3.1: Employment Comparison of Major Cities of New Zealand
Wellington
Restaurants Culture
Finance
Property
Government
& hotels
& recreation & insurance & business administratio
2,973
2,260
9,206
15,158
9,147
Christchurch
Auckland
1,925
5,130
819
1,801
3,070
7,890
(NZIER, 2002)
5,586
19,850
1,684
3,140
Australian CBDs tend to play a narrower role in their regional economies as compared to
Auckland. This reflects the specialized nature of economic activity operating in the Australian
CBDs with financial services dominating. This is especially the case for Sydney where the
finance industry located in the inner CBD employs almost half the regions workforce in this
sector. Many of the types of businesses located in Aucklands CBD are likely to be located in
sub regional CBDs in Australia.
CHAPTER 4 - ANALYSIS
1.1.
Analysis of Lahore Development Authority Commercialization
The collected data has been analyzed in a completely logical way so that one can easily
comprehend the true spirit of data collected. The analysis of this data is given below:
1.2.
Director Commercialization:
Khalid Mehmood Sheikh (Director Commercialization, LDA) was interviewed to get an insight
of Lahore Development Authority (LDA) Commercialization Policy. Following information was
received during the interview.
1.2.1. Commercialization Policy

The director commercialization of LDA was asked for his opinion regarding the
commercialization policy of LDA that has been initiated in July 2011. He replied, The
conversion of land use. It means the conversion of land use from residential to commercial.
When he was asked for further elaboration he replied by saying that it is allowing of
commercial uses to take place in the area of Gulberg scheme. He further added that this step has
been taken after due consultation and consideration.
Whereas when his opinion was seek about the violation of town planning principles regarding
the change of an already declared residential scheme to a commercial hub he admitted that this is
true but also added that the requirements were such that such action was becoming a necessity.
He provided us with the information that a case has been filed by members of civil society in the
Lahore High Court on the violation of this very town planning principle. He also added that LDA
has taken stance in the court that this policy is in the larger interest of the general public.
Carrying his argument further, the Director commercialization said, We have, as a matter of
policy, consulted the stakeholders before initiating this policy. The major stakeholders involved
in the formation of LDAs Commercialization Policy 2011 are identified by LDA are: (Latest
News: LDA, 2011)
Traders
Economist
Public representatives
Builders
Trade Unions
Shopkeepers
1.2.2. Main Considerations

As mentioned by the Director Commercialization, The main considerations for the formulation
of policy are the market trends and socio-economic situations. LDA commercialization policy
was formulated by keeping in the view of market trend i.e. in case of Lahore there are several
roads on which commercial activity is initiated and kept on increasing.
1.2.2.1.
MARKET TRENDS
Elaborating his point of view, the Director Commercialization said the existing market trend in
the city of Lahore provides us with the patterns that where the commercial activity will be
successful and new CBD for the city could be set up accordingly.
He also added that the existing area of Gulberg in last few years have become a favorite place for
families to visit for shopping. Due to this influx of visiting the area commercial activity has been
set up here.
1.2.3. effet on social life

When director commercialization was asked about the social implications of the policy, as it is
evident that personal life of the residents has been affected due to this phenomenon, he added
The personal life is being affected due to commercialization policies. As LDA declared new
roads than because of it, people get their plot converted to commercial, erect plazas, school
buildings etc. as a result of which the personal life of neighboring house is affected adversely.
The director commercialization LDA admitted that the privacy of neighboring houses has been
affected. On contrary to it some people feel that it is not a problem because as a consequence
their property value has increased and they feel very much secure. At the same time some
residents do not consider the increase in property value vital. They rather compare the property
value with clam. So they sold their plot or house and moved to other places far away from CBD
(Central Business District) for peace and calm.
1.2.4. Implementation
According to survey results, no problem is faced by the authority in implementing the policy.
Plots are being converted for commercial uses after paying commercialization fee. There is no
restriction on people to commercialize their residential plot after they are being declared
commercial. They get it converted to commercial plot anytime they want after paying the fee
according to given percentage of the plot value.
1.2.5. Revenue Generation

The policy helps greatly in generating the revenue. According to policy, 20% of the plot value is
charged as commercialization fee. This means greater the plot size, greater will be the plot value
and ultimately greater will be the revenue gather as commercialization fee. It means capital
collected through the commercialization fee is great income generator for LDA.
According to survey, the increase in the revenue of LDA is observed to be doubled. By July
2011, the revenue has increased to Rs. 3 billion from Rs. 1.3 billion (Fig 4.1). This shows that
after declaration of new commercialization policy, the income generation of government
institution has increased rapidly. Otherwise this figure of revenue collected was about Rs. 500
million before introducing the policy.
Revenue Collection
3500
3000
2500
Revenue Collection (in million PKR)
2000
1500
1000
500
0
Pre Commercialization
Post Commercialization
2012
Figure 4.1: LDA Revenue Collection
Source: Field Survey 2012
1.2.6. revenue utilization

The true spirit of revenue generated is that it should be in constructive manners. Revenue
collected is not spend by LDA itself on its staff or in the organization. All the collected funds
through commercialization is possessed by the Government of Punjab (GoPb). LDA has no
control over the expenditures of revenue. All the income is spend on various project commenced
by GoPb. These projects include the improvement of road i.e. canal road widening project,
infrastructure improvement and housing projects etc.
Director commercialization also added off the record that the ongoing Bus Rapid Transit Project
(BRTS) has also been financed by the amount collected from commercialization in Lahore.
1.2.7. problems due to Commercialization

Due to commercialization the major issue that is arising is the parking issue. Some individuals do
not make available the required parking space in their commercial property which leads to the
parking problem. People tend to park their vehicles on road sides. For mitigation and overcoming
this problem parking plazas are constructed but they are not serving in their true essence. The
major problem of not using the parking plaza is the parking charges and security issues. People
are reluctant to park their vehicles in plaza as they feel insecure of their car being stolen. For
effective use of parking plaza or parking lots, great determination is required by the government
to raise the spirit and confidence of people. Assure the public that their valuables and vehicles
are secure so that due to commercialization the load of parking is reduced from the main roads
and streamlines the management of parking.
Director commercialization also added that parking issue can be mitigated by privatizing the
parking spaces thus generating more income for the LDA.
1.2.8. Business Generation

Investigation of collected data exposed that it assisted the investors to breed the new business
opportunities. As plazas are built, it involves multiple sectors to come at a single point and
provide employment opportunities. It welcomes people from different sectors to start their
business. Contractors have generated opportunities for engineers, skilled labors and other person
from associated fields.
Moreover companies from different palace open their franchises or shops in the new plazas to
sell their goods i.e. staring up new businesses. This will not only help to generate the money but
also help the investor to flourish in the new built up area.
1.2.9. Feasibility Studies

Before the implementation of commercialization policy, stake holders were identified and studies
were carried to have insight the potential impacts of the policy, the response and implementation
of policy is much greater than the expected also added by director commercialization.
There is need of post implementation study of the policy.
1.2.10.
Pre and post commercialization trends
It was observed that before the implementation and working of policy, people are more reluctant
to get their property converted to commercial uses. The policy has helped the public to convert
their property very easily and in short time. Before the policy came into force people apply for
transformation of land uses from residential to commercial and it will take long time for the
approval and conversion, but the things have changed now one can easily get their property
converted to commercial in shorter time. The purpose of this policy is to facilitate the public and
for their easement.
1.2.11.
Procedure of Commercialization
The procedure is very simplified. Earlier the site visits are carried out to check the feasibility of
commercial use but because of commercialization policy particular road segments and area if
declared commercial does not require any field and site visits anymore. Applicants come to the
LDA office themselves and apply for the conversion of land use on the specific road segment
which has been allowed for commercialization. They just have to pay the commercialization fee
and submit the documents of their ownership for a particular plot or parcel of land.
1.2.12.
Illegal commercialization
For illegal activities in areas where commercial use is not allowed by the authority is handled
strictly. To check illegal commercialization sealing squads have been formed and are operational.
They monitor illegal commercial activities where commercialization is disallowed. Moreover,
sealing squad ensures that whether a particular building is being is constructed according to byelaws and drawing that is submitted to authority. If someone found guilty, heavy fines are imposed
on compoundable constructions if its non-compoundable then the building will be demolished
ultimately.
1.3.
traders point of view
Traders are major stakeholders of LDAs commercialization policy. These are the people who are
on the receiving end of the consequences of LDAs commercialization policy. The point of view
of traders and businessmen is of great importance as they are directly concerned with the
economic activity.
As mentioned earlier (201.6.4.1) that the emphasis has been made while carrying out survey that
majority of the traders from whom information is collected must have benefitted from the
commercialization policy in the recent past.
1.3.1. Factors motivated for setting up business

There are several factors that motivate the person to set up business. Mostly people tend to start
up their or buy property for living purpose anticipating the future value of the land which will
increase with the passage of time. According to the following graph (Fig 4.2) majority of people,
almost 40%, think that high rate of return and the location matters a lot for setting up the
business. Beside this some people refer this scenario that this is because of the trend that variety
of restaurants, plazas and cafs are here and same kind of activity is promoting. The graphical
representation clearly shows that which factor is most influential
Factors for Setting up the Business

45%
40%
35%
30%
25%
20%
15%
10%
5%
0%
Commercialization Policy
High rate of return
Location
Other
Figure 4.2: Factors for Setting up Business
4.1.1. increase in business activity

Establishment of commercial facilities naturally triggers an upward trend in the business activity.
The commercialization policy of LDA (2011) is also aimed to promote business activities in the
area of Gulberg. When the point of view of traders was asked about the increase in the business
activity in the area, majority were of the view that the overall business activity has increased in
the area due to the establishment of newer plazas and commercial markets. Around 82% of the
respondents favored the notion of increase in business activity while 18% (Fig 4.3) of the
respondents also added that increased business activity in gulberg should not be attributed to
commercialization policy only, although it is the most dominant factor in the recent past, but
there is also the trend of general public which is to be considered as a major factor in the
increased business activity in the area of gulberg
Increase in Business Activity
82%
18%
Yes
No
Figure 4.3: Increase in Business Activity
4.1.2. economic situation of country VS business establishment

When the respondents were asked about the comparison of overall economic situation of the
country and the business opportunities in gulberg, the majority was of the opinion that although
the industrial sector has been affected greatly yet the business in gulberg area has not suffered a
great deal due to the prevailing economic situation of the country.
They also added that general public is now attracted towards the new CBD of the city and this
phenomenon has helped them to maintain a steady growth of their business.
Some traders, on the other hand, also mentioned that merely increasing the space for commercial
activity or declaring some area as commercial will not help in the generation of economic
activity unless a suitable environment is also provided which is business friendly. Traders really
showed their anger and displeasure towards the power shortages and load shedding, indicating it
as one of the major hurdles in the growth of business in the area.
4.1.3. infrastructure facility
By interviewing the respondents most of the people said that no change has been observed before
and after implementation of this policy. They referred that such changes are politically
motivated; it has no concern with the policy. They develop the places where they have vested
interest without considering the needs of residents and other people. It has been observed that no
change has been made in the infrastructure while keeping in view the increase of commercial
activity in the area. It exerts extra load on the existing infrastructure and yet it has to be
improved and developed according to current and future needs.
4.1.4. management issues

When the view point of traders and shopkeepers was inquired regarding the management issues
they face just across their building premises, overwhelming majority pointed out towards the
lack of parking spaces available and also the traffic management by the concerned authorities.
The respondents attributed the parking issue as a negative factor and a hindrance for their
increase in business.
1.3.2. Employment Generation:
Employment Generation
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
Yes
No
Figure 4.4: Employment Generation
As described earlier the policy has different impacts, based on the data collected through surveys
its been observed that policy generates great employment opportunities. Talking to an HR
Manager of a plaza, he says, Yes, such kind of commercialization policy is very good as it
produces employment opportunities. It helps the people to feed their family, he further added,
such policy helps to segregate the commercial area from the residential one, like if look in other
countries of world there are different commercial market where shops of various kinds are
combined together. One can go there and buy all his/her desired things in one place as he/she
doesnt have to go anywhere else because everything is available at a spot. He narrated further,
suppose if we talk about a plaza, building produces more than 100+ employments, as there is
various kinds of shops, which means many families are being supported by their earning family
member which are employed there.
On another occasion a respondent responded that the commercialization policy has generated
employment opportunities. He also referred to the existing situation of country emphasizing on
load shedding specifically that the industry in Lahore is almost at halt and no employment
opportunity is provided by the government. Industries have started downsizing programs in
which they are expelling employees as they are not able to meet their expanses. He mentioned
from his personal experience that most of the workers from industry have now either started their
other business or seek employment in the commercial center of Lahore.
According to analysis of collected data, it is observed that the conversion of residential property
to commercial land use by LDAs commercialization policy, its produces number of employment
opportunities. In case of a residential plot, a family of 6 members is living there, nearly 2 to 3 of
them are earning member, but when it is converted to commercial use, it produces great number
of job/employment opportunities. As the building is now used as commercial purposes but before
its final use there are number of people involved and earning their livelihood at different stages.
During the construction of plaza it welcomes labors, for technical support and monitoring of
construction it gives employment to technical person i.e. engineers and technical staff, for the
water supply plumbers is engaged, for the decoration and interior designing of plaza it enables an
interior designer to earn by giving his valuable inputs. These are the pre-construction
employments but there are post-construction employments as like need of security guard, staff
for operation and maintenance etc.
According to an official of a plaza, Because of commercialization new plazas and malls are
erected, and because of this shops of various good and brands have been established which helps
the domestic industry to flourish and enables them to sale their goods at newer places.
1.3.3. tax collection

Another important aspect of commercialization policy is the revenue it generates in form of taxes
for the state to run its functions. States in crunch times look for every penny they can collect in
order to run the state functions smoothly.
Commercialization policy has been a great source of revenue not only for LDA itself but also to
the provincial and federal governments. The government collects capital value tax, tax on
transfer of land in case, the commercialization fees is charged at the rate of 20% of the land value
of the plot whose use is to be converted from residential to commercial according to the
valuation table.
The traders with majority of the view that the government is earning so much as a result of this
commercialization policy in form of taxes. Once a land use has been converted to commercial it
becomes a permanent source of income for the government. The traders hold the point of view
that the taxes collected from commercial areas must also be invested in these commercial areas.
The lack of infrastructural facilities in the commercial areas adversely affects the business and
economic activities.
Traders also mentioned that as the area has been converted from residential scheme to a
commercial hub so the infrastructure facilities were designed according to the residential
demands and it requires up gradation.
1.3.4. Opinion on spending the revenue collected

From the data collected, most of the people are willing that the revenue collected through this
commercialization policy, it should be spent on infrastructure especially on roads and if roads are
perfect, most of the traffic issues can be resolved. Some people refer that the revenue should be
spent on security of area as well.
Nearly two-third of the respondents shows their willingness for the revenue collected from
commercialization to be invested in infrastructure (Fig 4.5).
Revenue Spending
80%
70%
60%
50%
40%
30%
20%
10%
0%
Infrastructure Development
Traffic Managment
Others
Figure 4.5: Revenue Spending
1.3.5. AWARENESS ISSUES

During the survey it was observed that traders were not well aware of LDAs commercialization
policy and other development initiatives that are being carried out in city. Around 93% of the
public is unaware of this policy while rest of the people who knows this policy is either officials,
person dealing with real estate or some educated people (Fig 4.6). It was felt that LDA has not
been on par when it comes to the awareness campaigns regarding their development initiatives.
This short coming has resulted in uncalled for criticism
Public Awareness
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
Yes
No
Figure 4.6: Public Awareness

4.2.
land use profile
Land use profile or land use distribution of the area of gulberg is important to get an insight of
the changes that could be around the corner in next few years due to process of
commercialization. The land use distribution will also give an idea different land uses in the area.
The commercialization fees is charged at the rate of 20% of the total land value. The land value
for the area of gulberg is determined by valuation table which contains official rates of different
parts of the city. According to valuation table the land price in the area of gulberg is
1200000PKR.
The calculations that will be made in the following paragraphs and tables include the land value
according to the valuation table mentioned above.
Map 4.1: Land Use Map of Gulberg Lahore
The overall land use distribution of gulberg area has been given (Map 4.1, Table 4.1). From the
table it is clear that majority of the land nearly half of the area is being used for residential
purposes while the other predominant land use in the area of gulberg is commercial land use,
which is nearly one-fifth of the total area of the gulberg scheme.
Table 4.1: Land Use Distribution of Gulberg Lahore
Land Use
Area (in Marlas)
Land Cost (in Million Percentage of total
Commercial
Commercial/Residentia
58974
475
PKR)
70768.8
570
Area
18.8
0.2
l
Educational
Health
Industry
Institutional
Open Space
Parks
Public Building
Residential
Residential/Commercia
12697
98
9103
45
5869
39262
11274
170839
1109
15236.4
117.6
10923.6
54
----13528.8
205006.8
1330.8
4.0
0.03
2.9
0.01
1.87
12.49
3.59
54.37
0.35
l
Religious
Vacant
Total
37
4460
314242
44.4
5352
322933.2
0.01
1.42
100%
Percentage of Land Uses

0%
4%
0% 0%1%
54%
0%
19%
3%
4% 0%
2%
12%
Commercial
Educational
Industry
Open Spaces
Public Buildings
Residential/Commercial
Vacant
Commercial/Residential
Health
Institutional
Parks
Residential
Religious
Figure 4.7: Percentage of Land uses of Gulberg Scheme Lahore
Map 4.2: Land Use Map of Ali Zeb Road Gulberg Lahore
The land uses along the length of Ali zeb road which are dominant in character are residential
land use and parks with 28.7% and 45.3% respectievely while surprizingly the proportion of
commercial land use is much thinner as compared to percentage of commercial land use along
the other road segments in the area of gulberg.
According to land use reclassification plan (Map 4.8), this particular road segment has been
reserved for insitutional use purposes.
Table 4.2: Land Use Distribution of Ali Zeb Road Gulberg Lahore
Land Use
Residential
Commercial
Public Buildings
Parks
Educational
Vacant
Total
Area (in Marlas)
Land Cost (in million Percentage of Total
3521
2124
46
5548
382
623
12244
PKR)
4225
2549
55.2
6657.6
458.4
747.6
14692.8
Area
28.7
17.3
0.38
45.3
3.1
5.1
100

3% 5%
29%
45%
0%
17%
Residential
Commercial
Public Buildings
Parks
Educational
Vacant
Figure 4.8: Percentage of Land uses of Ali Zeb Road Gulberg Lahore
Map 4.3: Land Use Map of Hali Road Gulberg Lahore
The Hali road section is much smaller as compared to other road segments where commercial
activity has been allowed. The Hali road section land uses are dominated by residential and
commercial land uses at 48% and 36% respectievely.
Hali road has also been declared commercial completely. The land use transformation of 1709
marlas of residential area will result in 410 million PKR of capital collection for the development
authority.
Table 4.3: Land Use Distribution of Hali Road Gulberg Lahore
Land Use
Residential
Commercial
Public Buildings
Parks
Educational
Vacant
Total
Area (in Marlas)
Land Cost (million Percentage of Total
1709
1288
133
308
130
3568
PKR)
2050
1544
370
156
4120
Area
47.8
36.1
0.0
3.7
8.6
3.64
100
4%
9%
4%
48%
36%
Residential
Commercial
Public Buildings
Parks
Educational
Vacant
Figure 4.9: Percentage of Land uses of Hali Road Gulberg Lahore
Map 4.4: Land Use Map of M M Alam Road Gulberg Lahore
M.M.Alam road is a major attrection of people due to large variety of food and resturants that are
available along the road segemt. M M Alam has been declared commercial, although commercial
activity was carried out along the road for a long period of time.
For the table (Table 4.7) it is clear that almost 56% of the area along M M Alam road is being
used for commercial activity where as only 17% of the area is under residential useage. The land
use change according to land reclassification plan, conversion of land use from residential to
commercial land use will increase capital of Lahore Development Authority by571.44 million
PKR
Table 4.4: Land Use Distribution of M M Alam Road Gulberg Lahore
Land Use
Area (in Marlas)
Commercial
Educational
Park
Residential
Vacant
Total
7823
580
3040
2381
167
13991
Land Cost (in Million

PKR)
9387.6
696
3648
2857.2
200.4
16789.2
Percentage of Total
Land
55.9
4.1
21.7
17
1.2
100%
17%
1%
56%
22%
4%
Commercial
Educational
Park
Residential
Vacant
Figure 4.10: Percentage of Land uses of M M Alam Road Gulberg Lahore
Map 4.5: Land Use Map of Stadium Road Gulberg Lahore
The stadium road or liberty market is a main attraction for general public when it comes to
shopping. Apart from the park, the land use map (Map 4.5) shows commercial land use as a
major land use along the stadium road with almost 30% of the total area occupied by different
land uses.
According to reclassification plan (Map 4.8) whole of stadium road has been declared
commercial. The change in land use from residential and vacant to commercial land uses will
generate revenue of 997.68 million PKR to the development authority.
Table 4.5: Land Use Distribution of Stadium Road Gulberg Lahore
Land Use
Area (in Marlas)
Commercial
Educational
Industry
Park
Parking
Residential
Vacant
Total
5939
1768
357
6274
1701
3816
341
20196

PKR)
7126.8
2121.6
428.4
7528.8
2041.2
4579.2
409.2
24235.2
Percentage of Total
Land
29.4
8.8
1.8
31.1
8.4
18.9
1.7
100%
2%
19%
29%
8%
31%
2%
9%
Commercial
Educational
Industry
Park
Parking
Residential
Vacant
Figure 4.11: Percentage of Land uses of Stadium Road Gulberg Lahore
Map 4.6: Land Use Map of Gurumanget Road Gulberg Lahore
The land use distribution (Map 4.6) of gurumanget road shows the trend of mixed land use along
the particular road. According to land use reclassification plan (Map 4.8) portraits the said road
as completely commercial. At present the two dominant uses along the road are commercial and
residential land uses with 38.8% and 34.8% respecievely.
The land use change according to reclassification plan will earn the Lahore Development
Authority an amount of 342.96 million PKR from residential and vacant land uses.
Table 4.6: Land Use Distribution of Gurumanget Road Gulberg Lahore
Land Use
Area (in Marlas)
Commercial
Educational
Graveyard
Industry
Public Buildings
Residential
Vacant
Total
1521
87
634
186
65
1364
65
3922

PKR)
1825.2
104.4
760.8
223.2
78
1636.8
78
4706.4
Percentage of Total
Land
38.8
2.2
16.2
4.7
1.7
34.8
1.7
100%
2%
35%
39%
2%
5%
16%
2%
Commercial
Educational
Graveyard
Industry
Public Buildings
Residential
Vacant
Figure 4.12: Percentage of Land uses of Gurumanget Road Gulberg Lahore
Map 4.7: Land Use Map of Main Boulevard Gulberg Lahore
The existing land use map of main boulevard gulberg (Map 4.7) shows that the dominant land
use is commercial land use where commercial activity is being carried out. But the
reclassification plan (Map 4.8) for the gulberg scheme exhibits completely commercial
dominated land use.
The land use conversion on main boulevard of gulberg will result in earning of 1683.84 million
PKR which is 20% of the existing land cost, percentage set as commercialization fees. The land
use conversion or transformation will take place of residential as well as vacant area along main
boulevard gulberg Lahore.
Table 4.7: Land Use Distribution of Main Boulevard Gulberg Lahore
Land Use
Area (in Marlas)
Commercial
Educational
Park
Parking
Residential
Vacant
Total
12995
4591
6192
52
5556
1460
30846

PKR)
15594
5509.2
7430.4
62.4
6667.2
1752
37015.2
Percentage of Total
Land
42.1
14.9
20.1
0.2
18
4.7
100%
5%
18%
42%
0%
20%
15%
Commercial
Educational
Park
Parking
Residential
Vacant
Figure 4.13: Percentage of Land uses Main Boulevard Gulberg Lahore
4.3.
reclassification plan of gulberg lahore
Map 4.8: Reclassification Map of Gulberg Lahore
Details of reclassification plan are being provided in Annexure.
CHAPTER 5 - CONCLUSIONS
The study has been concluded with following conclusions:
The commercialization policy of Lahore Development Authority has been economically
beneficial for the residents as well as to the overall economy of the city.
The commercialization policys business friendly approach has resulted in increased
business opportunities due to conversion of land use.

The commercialization policy has helped LDA to stand on its feet as it is able to generate
adequate revenue from the commercialization.

The revenue generated from commercialization has also been used for development
projects.
The awareness among general public and concerned stakeholders is lacking and they are
not able to comprehend its true spirit

Parking and traffic management in the area of gulberg are major issues which requires
immediate attention.
CHAPTER 2 - RECOMMENDATIONS
In light of the conclusions following recommendations are made:
Lahore Development Authority (LDA) should explore different sectors for revenue
generation.
It recommended that LDA should develop new commercial areas rather than changing the
land use of existing residential areas

The revenue generated from the commercialization policy should firstly be utilized for
the infrastructure development of the commercial areas in which land use change have
taken place
LDA must carry out proper awareness campaigns for the stakeholders involved to
transmit the benefits to the general public

Business and economic activity in the city should also be enhanced by other techniques
rather than land use conversion
BIBLIOGRAPHY
AFOLABI, M. 1992. The Review of Related Literature in Research. International Journal of

Information and Library Research. 4(1), pp.59-66.
ALAM, A.R. 2009. Scam in the Making. [online]. [Accessed 24 May 2012]. Available from
World Wide Web: <http://www.opfblog.com/9574/scam-in-the-making-ahmad-rafay-alam/>
ANWAR, F. Not Dated. Commercialization of Traffic Corridors in Karachi - A Case Study of the
Crisis of Governance and Accountability in the Policy to Implementation Cycle. Karachi:
NEDUET Karachi.
BRUCE, C.S. 1994. Research Student's Early Experiences of the Dissertation Literature Review.
Studies in Higher Education. 19(2), pp.217-229.
BUCHNAN, C. 2008. The Economic Impact of High Density Development and Tall Buildings In
Central Business Districts. London: British Property Federation.
GHK. 2000. The Future of Downtown Toronto-Background Studies.. Toronto.
GLAESER, E. and D. MARE. 2001. Cities and Skills. Journal of Labor Economics. 19, pp.316342.
HAMEED, R and O NADEEM. 2005. Publication Detail. [online]. [Accessed 15 May 2012].
Available from World Wide Web: <http://lahorenama.files.wordpress.com/2008/08/haphazardcommercialization-in-lahore-obaidullah-nadeem1.pdf>
KUMAR, R. 2008. Research Methodology. [online]. [Accessed 1 June 2012]. Available from
World Wide Web: <>
Latest News: LDA. 2011. [online]. [Accessed 19 May 2012]. Available from World Wide Web:
<http://www.lda.gop.pk/index.php?option=com_content&view=article&id=208&Itemid=106>
NZIER. 2002. New Zealand Institute of Economic Research. Auckland.
RAINES, F.D. 2000. Playing from Strengths. The Brookings Review. 18(3), pp.16-19.
ANNEXURE
FORMAT STRUCTURED INTERVIEW FROM OFFICIALS OF LDA
Project Advisor: Prof. Dr. Ihsan Ullah Bajwa

Project Advisee: Muhammad Umair and Hassan Ali
Name of respondent:
Designation of Respondent:
Contact No.:
1. How would you define commercialization policy? What were the main considerations that
stimulated the formation of this policy?
2. What weight age was given to the economic impact of commercialization policy?
3. What compelled the authority to declare an existing residential area as new CBD of the city
when the area has already been identified for establishment of new CBD?
4. How would you comment that the 800% reported increase in commercialization fees is only
aimed at fulfilling the expenditures of LDA?
5. In your opinion what were the main hurdles in the implementation of commercialization
policy?
6. What percentage increase has been observed in the revenue of LDA after the implementation
of commercialization policy?
7. How would you plan to utilize the revenue generated as the result of commercialization
policy?
8. How are you planning to mitigate the issues that have risen due to this commercialization
policy?
9. How commercialization policy in your opinion has helped in the increase in business activity
in the city?
10. Is there any prior study was conducted to assess the economic impacts of the
commercialization policy?
11. How would you justify the commercialization policys economic benefits in the existing
economic situation of the country?
12. How the stakeholders you identified while announcing the commercialization policy helped
in the implementation of the said policy?
13. Have you conducted any study regarding social impacts on residents life, besides merely
studying economic impacts?
14. Any complaints lodged by residents against CP at any forum?
15. What infrastructural changes were made or planned in future regarding sewerage and water
supply due to land use changes and demand?
16. How would you highlight the difference between the pre and post commercialization policy
commercialization phenomenon?
17. How would you justify the fact that change of residential land use into commercial is against
the planning principles?

Project Advisor: Prof. Dr. Ihsan Ullah Bajwa

Project Advisee: Muhammad Umair and Hassan Ali
Name of respondent:
Designation of Respondent:
Contact No.:
Are you aware of LDA commercialization policy?

(a) Yes
b) no
2. Did LDA consult about their commercialization policy with the market association or
shopkeepers?
(a) Yes
(b) No
3. What was your input to the policy formulation?
1.
Ans.
4.
Do you switch your business in the recent past (from six months to 1 year)?
(a) If yes
(b) No
Then why
5.
6.
7.
8.
9.
10.
What factor(s) motivated you to set up business here? (more than one possible)
(a) Commercialization policy
(b) high rate of return
(c) location (d) other(s).
Do you observe increase in job opportunities after commercialization policy formation?
(a) Yes
(b) No
Do you observe the increase in overall business activity of Gulberg?
(a) Yes
(b)No
Do you think that overall economic situation of the country helps in setting up business?
(a) Yes
(b) No
Do you think that commercialization policy has contributed to increase in your business?
(a) Yes
(b) No
Have you observed any changes in infrastructure facilities after commercialization policy?
(a) Yes
(b) No
What management issues you have observed after the deceleration of commercialization
policy?
12. What difficulties commercialization policy has posed to setting up the business in the area?
13. What impact of increased land prices is upon initial cost of setting up new business?
11.
Ans.
14.
Do you think that this commercialization policy is intended to promote commercial activity
in the city?
(b) If yes
(b)if no
Then why
Do you think that revenue collection will increase as a result of this commercialization
policy?
(a) Yes
(b) No
16. What kind of problems do you face because of commercialization policy?
15.
Ans.
How would you like the revenue collected to be spent?

(a) Infrastructure development (b) Traffic management
(c) Any other (specify)
18. Any suggestions for improvement in commercialization policy?
17.
Ans.

Economic Impacts of Lda Commercialization Policy, 2011

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Economic Impacts of Lda Commercialization Policy, 2011

Uploaded by

Copyright:

Available Formats

ECONOMIC IMPACTS OF LDA COMMERCIALIZATION POLICY, 2011

(Case Study of Gulberg Lahore)

DEPARTMENT OF CITY AND REGIONAL PLANNING

Submitted to the Department of City and Regional Planning

Prof. Dr. Ihsan Ullah Bajwa

INTRODUCTION TO RESEARCH PROBLEM...................................................15

STUDIES ADDRESSING THE RESEARCH PROBLEM....................................16

DEFICIENCIES IN EXISTING STUDIES............................................................16

OBJECTIVES OF THE STUDY....................................................................................17

LIMITATIONS OF THE STUDY...................................................................................18

SELECTION OF RESEARCH TOPIC...................................................................19

SELECTION OF CASE STUDY AREA................................................................20

CONCLUSIONS AND RECOMMENDATIONS...................................................22

COMMERCIALIZATION POLICY 1993.....................................................................23

COMMERCIALIZATION POLICY ISSUES................................................................28

COMMERCIALIZATION POLICY 2011......................................................................30

CHAPTER 3 - LITERATURE REVIEW......................................................................................34

REQUIREMENT OF LITERATURE REVIEW............................................................34

CHARACTERISTIC OF GOOD LITERATURE REVIEW...................................34

CASE STUDY OF TORONTO CENTRAL BUSINESS DISTRICT............................34

INTRODUCTION TO TORONTO CENTERAL BUSINESS DISTRICT............35

ECONOMIC IMPACTS OF TORONTO CENTERAL BUSINESS DISTRICT. . .36

CENTRAL BUSINESS DISTRICT AUCKLAND NEWZELAND..............................37

ROLE OF CENTRAL BUSINESS DISTRICT.......................................................37

STRUCTURE OF CENTRAL BUSINESS DISTRICT ECONOMY.....................38

COMPARISON WITH REGIONAL CENTERAL BUSINESS DISTRICTS........41

ANALYSIS OF LAHORE DEVELOPMENT AUTHORITY COMMERCIALIZATION

EFFET ON SOCIAL LIFE......................................................................................44

PROBLEMS DUE TO COMMERCIALIZATION.................................................46

PRE AND POST COMMERCIALIZATION TRENDS......................................47

TRADERS POINT OF VIEW.......................................................................................49

FACTORS MOTIVATED FOR SETTING UP BUSINESS....................................49

INCREASE IN BUSINESS ACTIVITY.................................................................50

ECONOMIC SITUATION OF COUNTRY VS BUSINESS ESTABLISHMENT.51

OPINION ON SPENDING THE REVENUE COLLECTED.................................54

LAND USE PROFILE....................................................................................................56

RECLASSIFICATION PLAN OF GULBERG LAHORE.............................................72

FIGURE 4.1: LDA REVENUE COLLECTION..................................................................................................46

Muhammad Umair & Hassan Ali

Bus Rapid Transit

Central Business District

Compressed Natural Gas

Geographic Information System

High Level Design Committee

Integrated Master Plan Lahore

Lahore Development Authority

Marla (225 sq ft of land in Lahore city)

Municipal Cooperation Lahore

1.1.1. introduction to research problem

1.1.2. studies addressing the research problem

1.1.3. deficiencies in existing studies

1.1.4. statement of purpose

1.1.5. importance of study

objectives of the study

The study is carried out with the following objectives:

To explore the economic benefits of LDA commercialization policy

limitations of the study

have prepared for the implementation of the policy.

Research methodology is a systematic way to solve a research problem (KUMAR, R, 2008).

1.6.1. selection of research topic

1.6.2. literature review

1.6.3. selection of case study area

1.6.4. data collection