Live rankings by Swiss group IQAir gave the city a pollution index score of 1165, followed by the Indian capital of New Delhi, with 299.
"The war room committee will review weather and air quality forecasts ... daily and monitor the performance and actions of field officers," said Sajid Bashir, a spokesperson for the province's environment department.
Officials told Reuters it brings together staff from eight departments, with a single person charged with overseeing tasks from controlling burning of farm waste to managing traffic.
Twice daily sessions will analyse data and forecasts to brief stakeholders on efforts to fight pollution, and issue daily advisories, they added.
But Wednesday's index score for Lahore fell short of last week's unprecedented score of 1900, which had exceeded recommended levels by more than 120 times, prompting closure of primary schools and orders to work from home.
At the time, Punjab's senior minister, Marriyum Aurangzeb, blamed the toxic air on pollution drifting across the border with India just 25 km (16 miles) away. Northern areas of the neighbouring nation are also battling severe pollution.
The Punjab government would ask Pakistan's foreign office to take up the matter with India's foreign ministry, she told the Indian Express newspaper in an interview published on Wednesday.
South Asia is shrouded in intense pollution every winter as cold air traps emissions, dust, and smoke from farm fires, while pollution could cut more than five years from people's life expectancy in the region, a study found last year.
On Tuesday the environment minister of New Delhi, rated the world's most polluted capital for four successive years by IQAir, said officials were looking to artificial rain to fight the problem this year.
(Reporting by Mubasher Bukhari in Lahore; Writing by Sakshi Dayal; Editing by Clarence Fernandez)
People drive amid heavy smog in Lahore, Pakistan, 06 November 2024. The government of Punjab Province, in eastern Pakistan, ordered the closure of all primary schools in its capital, Lahore, from 04 November due to the high levels of air pollution recorded in recent days, reaching up to 45 times above the level recommended by the World Health Organization (WHO). Previous week, Lahore recorded the highest levels of air pollution among different cities across the world. EPA-EFE/RAHAT DAR