I'm not opposed to subsidizing urban transport as long as it has a financially viable plan (i.e. it is profitable in terms of real estate taxes, property value, business expansion + revenue in the next 20-30 years) and the current financial situation allows for investment.
However that discussion is off now, The current administration is stuck with these two projects and abandoning them is not even an option. They have to own them. Rather imo, both projects need expansion and investment to cover a wider region for profitability/sustainability. This requires rethinking and reform> Yet it has to be made fairer to the people of Punjab. The current unfair and unsustainable model however cannot go on. The whole Punjab cannot keep subsidizing, pay for huge loans and stick with the current operators for an undermined time.
It requires less politics and more wisdom from the current administration to implement the needed changes.
Both projects (along with all liabilities) have to be handed over to the city. The city has to chalk out a sustainable plan; while the province helps it to achieve that.
I know of a similar but much larger metro project where at each stop the city has erected a tower with housing units and a shopping center - which partially pays for the running expenses. To rescue these two projects - they can be put under an independent public corporation, expand them further several kms on either side, increase the volume of local commuters in a reasonable times and let the corporation to develop projects/invest to generate revenue. Even local taxes are not the sole solution - especially for the elephant orange train project.