Every Kilometre of Traffic Congestion Costs Millions to the Economy

Apart from vexation that traffic jams cause, they also hurt the economy in a bad way. A study conducted in Lahore found that traffic congestion costs Rs. 47.9 million a year. The results were concluded based on a survey conducted in an area of 1.1 kilometres.

Seminar at Punjab Safe Cities Authority (PSCA)

The results were presented by Assistant Professor Syed Hassan during a seminar held at PSCA Lahore office. The Department of Economics of Lahore University of Management Sciences Professor researched on the growing traffic congestion problem in Lahore and its effects on the economy.

The seminar was named “A Brief Study on Traffic Congestion in Lahore (Cost and Solution)” and PSCA DG Ali Amir Malik, PSCA CEO Nair Malik and Chief Traffic Officer (CTO) Rai Ijaz Ahmad were in the attendance.

Professor Hassan further stated that the main focus of his research was economical loss and how to cope with it. Traffic congestion also has an impact on environment among human behaviour and other things.

Read More: This Pakistani CEO Used Google Maps and a Cycle To Defeat Lahore’s Traffic Jam

Study Parameters

Following parameters were considered during the analysis

  1. Traffic type: Cars, rickshaw and Motorcycle
  2. Area over which the survey was conducted: 1.1 kilometres
  3. Standard time is taken by traffic to cover the study area: 160 seconds
  4. Area extension: The Mall road from Canal road to Davis road


Following results were calculated (per week basis)

For motorcycles

  1. Ratio of motorcycles per hour: 60%
  2. Loss of fuel: Rs. 419,000
  3. Total loss: Rs. 444,000

For rickshaw

  1. Ratio of rickshaws per hour: 20%
  2. Loss of fuel: Rs. 33,000
  3. Overall loss: Rs. 380,000

For cars

  1. Ratio of cars per hour: 30%
  2. Loss of fuel due to traffic jam: Rs. 314,000
  3. Total loss: Rs. 476,000

Economic Loss Calculation

Economic loss was derived by calculating following variables

  1. Time wasted from traffic clogging
  2. Average earning of drivers per minute
  3. Rickshaw driver, bike rider and car drivers all were included as the average earning was calculated
  4. Wastage of fuel from the engine as it was turned on during traffic jams.

Finally, the economic loss was calculated by multiplying average earning per minute with the times wasted from congestion.

The amount totalled to Rs. 47.9 million which roughly equals to Rs. 1 million per week and around 1.42 lac rupees per day.

Via eTribune

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