The government's decision came in light of the Lahore High Court's order to immediately impose a "smog emergency" in the city due to the constantly hazardous air quality index.
The government said the environment department would seal industrial units with reopening only possible through a court order.
The government said district administration will take strict actions to prevent stubble burning and black smoke from any chimney of brick kilns as well as factories and all brick kilns must transfer to zigzag technology.
"Every smoke-emitting vehicle will be impounded and will be released only after attaining a proper fitness certificate," it said, adding that special anti-smog squads consisting of district and highway police will patrol day and night to stop stubble burning.
On Wednesday, Lahore High Court Justice Shahid Karim chided the Lahore commissioner Muhammad Ali Randhawa for his failure to control the pollution.
"Smog is not my personal problem but it is a matter of concern for the lives of our children. You are the custodian of Lahore city. See what you have done to it... you should be ashamed of Lahore's condition," the judge observed.
Caretaker Chief Minister Mohsin Naqvi had earlier briefed caretaker Prime Minister Anwaarul Haq Kakar about the main reason for the spread of smog in Lahore as the burning of residues of crops in India's Punjab state.
Kakar assured the Punjab government of taking up the issue of the smog with India at the diplomatic level.