The negative impacts of road traffic congestion in the Smart City environment are the subject of this study. Although the postponements are not entirely new, they are a well-known issue that affects a large portion of the worldwide population through pollution and postponements. In order to maintain flow and prevent traffic bottlenecks, there is a higher need for traffic management due to the growing urbanization and number of motorized motor vehicles. We use Peshawar Chowk, being one of Pakistan's most important urban and economic centers, it was chosen as a pilot research location. It is experiencing an uncontrolled phase of fast urbanization and motorization. The study first examines sustainable transportation systems to comprehend the idea of environmentally friendly transportation. The research then assesses to determine the most sustainable kind of transportation, considering Pakistan's current urban transportation and transportation infrastructure. Using AIMSUN software, the best option for a more environmentally friendly transportation system may be found. We do this by comparing the criteria and alternatives in pairs. A survey questionnaire is used to conduct this pair-wise comparison.