economic impacts of lda commercialization policy, 2011

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ECONOMIC IMPACTS OF LDA COMMERCIALIZATION POLICY, 2011

(Case Study of Gulberg Lahore)

Session 2008-2012

Project Advisor

Prof. Dr. Ihsan Ullah Bajwa

Researcher

Muhammad Umair2008-CRP-30

Hassan Ali2008-CRP-46

DEPARTMENT OF CITY AND REGIONAL PLANNING

UNIVERSITY OF ENGINEERING AND TECHNOLOGY, LAHORE

2012

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APPROVAL SHEET

ECONOMIC IMPACTS OF LDA COMMERCIALIZATION POLICY, 2011

(Case Study of Gulberg Lahore)

By

Muhammad Umair2008-CRP-30

Hassan Ali2008-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

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Table of ContentsLIST 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

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

3.2. 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

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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

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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

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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

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LIST OF FIGURES

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

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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

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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 & Hassan Ali

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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.

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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

xiii

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.

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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

M Marla (225 sq ft of land in Lahore city)

MCL Municipal Cooperation Lahore

NOC No Objection Certificate

PKR Pakistani Rupee

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 didn’t 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 LDA’s 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

LDA’s 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 Lahore’s roads as a major factor responsible for the city’s 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

properties

ii. Lump sum payment of conversion fee at the rate of 25% of the prevailing market rate of

commercial plots

iii. Temporary conversion extendable annually for a maximum period of 10 years for clinic,

schools, banks and offices on payment of annual fee of less than 3% of conversion fee.

iv. Exemption from submission of NOC for residential buildings/properties used for

government/ autonomous/semi-autonomous offices.

v. Restriction on partial conversion.

vi. Regularization of an existing illegal commercialization and imposition of 10% surcharge

in addition to payment of prescribed fee.

vii. 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. The commercialization fee in urban area reduced to 20% of commercial value of the land based on valuation tables.

ii. Fee for rural areas fixed at 20% of average sale price of preceding 12 months.iii. 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.

iv. A 5% rebate allowed if the payment of fee is made in lump sum and within period of 4

months.

v. Submission of NOCs from the neighbors no more required on roads selected and declared

for commercialization after inviting objection through press.

vi. In addition to some uses laid in 1993 Policy, facility of annual/temporary

commercialization extended to uses like guest houses, youth hostels, gymnasiums,

museums, health centers, restaurants and auditoriums.

vii. Partial commercialization disallowed but regularization of existing partially

commercialized premises the specific areas has been made permissible.

viii. Commercialization fee for educational, health and information technology institutions

reduced by 50%.

ix. On individual merits the conversion of land use for projects run by NGOs, trusts,

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

commercialization fee.

x. 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.

No.

Name of Areas

1. Shahrah-e-Quaid e Azam 10. Ferozepur Road

2. Egertion Road 11. McLeod Road

3. Empress Road 12. Shalimar Link Road

4. Davis Road 13. Canal Bank Road

5. Lawrence Road 14. Kashmir Egerton Road

Develpoment Scheme6. Race Course Road

7. Lower Mall 15. Lytton Road

8. Multan Road 16. Queens Road

9. Jail Road

Table 2.2: List of Roads Approved by LDA for Allowing Change of Use.

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 NOC’s 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

dispose them off before an area is finally identified by it for allowing commercialization.

iii. After receipt of 50% of the fee as down payment, the balance 50% may be made payable

in 3 installments spread over a period of one year.

iv. 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

in lump sum.

v. 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

identified by the Commercialization Committee.

vi. 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

price of land within the rural settlement.

vii. 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

structural design with a view to alter the nature of building may not be done.

viii. The rate of fee for permanent commercialization in respect of educational, information

technology related institutions and hospital/clinic need to be lowered down substantially.

ix. 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

requirements of the commercial buildings.

x. 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

located within 100m of a crossing of two primary roads or a roundabout.

xi. 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

town planner, traffic and infrastructure engineers on its membership.

xiii. 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 (Doctor’s 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

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 Toronto’s 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.

1City of Toronto Planning Board, Central Area Plan Review, 1975c, Part 2: Area Plan for Downtown.

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).

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 Downtown’s 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.

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 city’s 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. It’s

share of Auckland City’s and the region’s 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 CBD’s

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 CBD’s share of Auckland City’s, and the region’s, 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 CBD’s 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 CBD’s 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 City’s jobs and 76 per cent of the region’s jobs in

Insurance.

79 per cent of Auckland City’s jobs and 63 per cent of the region’s jobs in legal

services.


accounting services

83 per cent of Auckland City’s jobs and 66 per cent of the region’s jobs in the hotel

industry.

60 per cent of Auckland City’s jobs and 49 per cent of the region’s jobs in higher

education.


employment placement services.

48 per cent of the region’s jobs in local government administration.

46 per cent of the region’s 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 CBD’s education scene is dominated by tertiary education with the CBD accounting for

almost half of the region’s 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 region’s gross domestic product. (NZIER, 2002)

3.3.5. COMPARISON WITH REGIONAL CENTERAL BUSINESS

DISTRICTS

Compared to some of the Australian CBDs, Auckland’s 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. Wellington’s CBD employs almost as many workers

as Auckland and accounts for significantly more (32%) of its region’s 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 region’s full time employees are employed in the Auckland

CBD which is similar to the proportion of the Canterbury region’s FTEs employed in the

Christchurch CBD. However, Wellington’s 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.

Wellington’s CBD plays a more dominant role in its regional economy across a number of

industries as compared to Auckland’s CBD. For example Wellington’s CBD contains 84% of

the region’s employment in financial services, 50% of the region’s communications employment

and nearly 40% of the region’s employment in culture and recreation. Wellington’s 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

Auckland’s CBD.

Table 3.1: Employment Comparison of Major Cities of New Zealand

Restaurants& hotels

Culture& recreation

Finance& insurance

Property& business

Government a

Wellington 2,973 2,260 9,206 15,158 9,147Christchurch 1,925 819 1,801 5,586 1,684Auckland 5,130 3,070 7,890 19,850 3,140

(NZIER, 2002)

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 region’s workforce in this

sector. Many of the types of businesses located in Auckland’s CBD are likely to be located in

sub regional CBDs in Australia.

CHAPTER 4 - ANALYSIS

4.1. 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:

4.2. 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.

4.2.1. 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

4.2.2. 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.

4.2.2.1. 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.

4.2.3. 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.

4.2.4. 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.

4.2.5. 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.

Pre C

ommerc

ializa

tion

Post

Commerc

ializa

tion

2012

0

500

1000

1500

2000

2500

3000

3500

Revenue Collection

Revenue Collection (in million PKR)

Figure 4.1: LDA Revenue Collection

Source: Field Survey 2012

4.2.6. 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.

4.2.7. 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.

4.2.8. 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.

4.2.9. 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.

4.2.10. 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.

4.2.11. 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.

4.2.12. 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 bye-laws and drawing that is submitted to authority. If someone found guilty, heavy

fines are imposed on compoundable constructions if it’s non-compoundable then the building

will be demolished ultimately.

4.3. 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 (211.6.4.1) 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.

4.3.1. 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 cafés are here and same kind of activity is promoting. The graphical

representation clearly shows that which factor is most influential

Commercialization Policy

High rate of return Location Other0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

Factors for Setting up the Business

Figure 4.2: Factors for Setting up Business


4.3.2. 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

82%

18%

Increase in Business Activity

Yes

No

Figure 4.3: Increase in Business Activity


4.3.3. 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.

4.3.4. 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.

4.3.5. 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.

4.3.6. EMPLOYMENT GENERATION:

Yes No0%

10%20%30%40%50%60%70%80%90%

100%

Employment Generation

Figure 4.4: Employment Generation


As described earlier the policy has different impacts, based on the data collected through surveys

it’s 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

doesn’t 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.”

4.3.7. 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.

4.3.8. 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).

Infrastructure Development Traffic Managment Others0%

10%

20%

30%

40%

50%

60%

70%

80%

Revenue Spending

Figure 4.5: Revenue Spending


4.3.9. 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

Yes No0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Public Awareness

Figure 4.6: Public Awareness


4.4. 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

PKR)

Percentage of total

Area

Commercial 58974 70768.8 18.8

Commercial/Residential 475 570 0.2

Educational 12697 15236.4 4.0

Health 98 117.6 0.03

Industry 9103 10923.6 2.9

Institutional 45 54 0.01

Open Space 5869 --- 1.87

Parks 39262 --- 12.49

Public Building 11274 13528.8 3.59

Residential 170839 205006.8 54.37

Residential/Commercial 1109 1330.8 0.35

Religious 37 44.4 0.01

Vacant 4460 5352 1.42

Total 314242 322933.2 100%

19%

0%

4%

0%

3%

0%

2%

12%

4%

54%

0% 0% 1%

Percentage of Land Uses

Commercial Commercial/Residential

Educational Health

Industry Institutional

Open Spaces Parks

Public Buildings Residential

Residential/Commercial Religious

Vacant

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 Area (in Marlas) Land Cost (in million

PKR)

Percentage of Total

Area

Residential 3521 4225 28.7

Commercial 2124 2549 17.3

Public Buildings 46 55.2 0.38

Parks 5548 6657.6 45.3

Educational 382 458.4 3.1

Vacant 623 747.6 5.1

Total 12244 14692.8 100

29%

17%

0%

45%

3%5%


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 Area (in Marlas) Land Cost (million

PKR)

Percentage of Total

Area

Residential 1709 2050 47.8

Commercial 1288 1544 36.1

Public Buildings - - 0.0

Parks 133 - 3.7

Educational 308 370 8.6

Vacant 130 156 3.64

Total 3568 4120 100

48%

36%

4% 9%4%


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) Land Cost (in Million PKR)

Percentage of Total Land

Commercial 7823 9387.6 55.9Educational 580 696 4.1Park 3040 3648 21.7Residential 2381 2857.2 17Vacant 167 200.4 1.2Total 13991 16789.2 100%

56%

4%

22%

17% 1%


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



Commercial 5939 7126.8 29.4Educational 1768 2121.6 8.8Industry 357 428.4 1.8Park 6274 7528.8 31.1Parking 1701 2041.2 8.4Residential 3816 4579.2 18.9Vacant 341 409.2 1.7Total 20196 24235.2 100%

29%

9%

2%

31%

8%

19% 2%


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



Commercial 1521 1825.2 38.8Educational 87 104.4 2.2Graveyard 634 760.8 16.2Industry 186 223.2 4.7Public Buildings 65 78 1.7Residential 1364 1636.8 34.8Vacant 65 78 1.7Total 3922 4706.4 100%

39%

2%

16%5%2%

35%

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



Commercial 12995 15594 42.1Educational 4591 5509.2 14.9Park 6192 7430.4 20.1Parking 52 62.4 0.2Residential 5556 6667.2 18Vacant 1460 1752 4.7Total 30846 37015.2 100%

42%

15%

20%

0%

18% 5%


Commercial

Educational

Park

Parking

Residential

Vacant

Figure 4.13: Percentage of Land uses Main Boulevard Gulberg Lahore

4.5. 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 policy’s “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 6 - 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

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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.316-

342.

HAMEED, R and O NADEEM. 2005. Publication Detail. [online]. [Accessed 15 May 2012].

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commercialization-in-lahore-obaidullah-nadeem1.pdf>

KUMAR, R. 2008. Research Methodology. [online]. [Accessed 1 June 2012]. Available from

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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.

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http://www.lda.gop.pk/index.php?option=com_content&view=article&id=208&Itemid=106

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 policy’s 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.:

1. 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?

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. 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).

6. Do you observe increase in job opportunities after commercialization policy formation?(a) Yes (b) No

7. Do you observe the increase in overall business activity of Gulberg?(a) Yes (b)No

8. Do you think that overall economic situation of the country helps in setting up business?

(a) Yes (b) No9. Do you think that commercialization policy has contributed to increase in your business?

(a) Yes (b) No10. Have you observed any changes in infrastructure facilities after commercialization policy?

(a) Yes (b) No11. 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?

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

15. 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?

Ans.

17. 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?

economic impacts of lda commercialization policy, 2011

Documents

business generation474

business activity504

director commercialization

commercialization policy434

commercialization policies232

hassan ali2008crp

literature review191

research problem161