7.3. Key socio-economic indicators with focus on Lahore

Table of contents

7.3.1. Economic situation

Lahore2196 is the second-largest city in Pakistan, and the capital of Punjab,2197 the country’s second largest2198 and wealthiest province. Punjab province accounts for approximately 60 % of Pakistan’s GDP2199 and houses more than half of Pakistan’s population.2200

Lahore had approximately 13 million inhabitants in 2023, according to the latest Population & Housing Census.2201 The city is a centre for political, cultural and economic affairs2202 and a leading hub for industry, commerce and banking.2203 It is a multicentric megacity with several business centres.2204 Textile industry represents the most important industrial branch2205 with an estimated 1 500 to 2 000 textile and garment factories.2206 Other important sectors include rubber factories and iron and steel mills.2207 Lahore’s industrial base has fostered its commercial and banking sectors. The city provides an advanced telecommunication infrastructure and is home to numerous corporate headquarters. However, major challenges such as poverty and income inequality persist, despite economic growth. The population of Lahore is growing fast, which, in combination with a shortage of economic opportunities for low-income residents, has led to the development of large, densely populated slums.2208

  • 2196

    All Lahore-specific information in this chapter refers to Lahore district, which was home to a population of 13 million, according to the latest census data. Lahore district is part of the larger administrative unit Lahore division (22.8 million inhabitans) and divided into several tehsils. Pakistan, PBS, 7th Population & Housing Census 2023 – Dashboard, n.d., url. Set filters to Lahore District, accessed on 23 March 2026.

  • 2197

    Britannica, Lahore, last updated 1 March 2026, url

  • 2198

    Pakistan, PBS, 7th Population & Housing Census 2023 – Provincial Census Report Punjab, n.d., url, p. 27

  • 2199

    Arab News, Pakistan’s Punjab unveils .9 billion budget, increases development spending by 47%, 16 June 2025, url

  • 2200

    Arab News, Pakistan’s Punjab unveils .9 billion budget, increases development spending by 47%, 16 June 2025, url; Britannica, Punjab, last updated 15 February 2026, url

  • 2201

    Pakistan, PBS, 7th Population & Housing Census 2023 – Dashboard, n.d., url. Set filters to Lahore District, accessed on 23 March 2026.

  • 2202

    Tabassum, H., Analysing Lahore through the Lens of Just City, April 2025, url

  • 2203

    Britannica, Lahore, last updated 1 March 2026, url

  • 2204

    CDPR, Lahore Beyond Boundaries – Not a Walled City Anymore [Blog], 12 July 2024, url

  • 2205

    Britannica, Lahore, last updated 1 March 2026, url

  • 2206

    Arisa, Overworked and Underpaid: Excessive hours, wage theft and poor working conditions in Pakistan’s garment export factories, July 2025, url, p. 6

  • 2207

    Britannica, Lahore, last updated 1 March 2026, url

  • 2208

    Dziak, M., Lahore, Pakistan, EBSCO, 2024, url