The airport, earlier known as Lahore International Airport, is the second largest airport in the country and serves a large number of passengers from across the Punjab province.
The expansion will help operate an increased number of international flights from the airport and to cater to it the airport building will also be expanded.
The tentative new design of the airport is said to have been inspired by the national flower Jasmine.
According to sources, the contract for the construction has been handed over to a private Spanish firm Tepsa International.
The firm has reportedly asked for two and half years time for the completion of the project. It has previously worked on the construction of the airport in the Spanish capital Madrid and on the spectacularly built airport in the Brazilian city of Sao Paulo.
After the completion of the project, the number of airplanes parked inside the hanger near the main terminal will be increased to 22 from only seven at present.
The present building of the airport will not be demolished but it will rather be expanded in north, south and east. The expansion in the west will not take place due to the runway.
The current parking area will be transformed into arrival and departure lounges under the expansion plan. The round park situated near the airport will instead serve as new parking for vehicles.