Kim by Rudyard Kipling (1901) — the novel opens with the orphan Kim sitting on the Zamzama cannon outside the Lahore Museum, where Kipling's father was curator. The Lahore chapters are the most vivid evocation of the city under the British Raj.
The Reluctant Fundamentalist by Mohsin Hamid (2007) — set in the form of a monologue in a Lahore tea house on Anarkali, this short novel is perhaps the best contemporary literary portrait of the city and of post-9/11 Pakistan.
Moth Smoke by Mohsin Hamid (2000) — Hamid's first novel, set in a Lahore of air-conditioned bungalows, power cuts, and corrupt officials. The city itself is the third major character.
Train to Pakistan by Khushwant Singh (1956) — set near the Pakistan-India border in 1947, this short novel captures the partition violence that scattered Lahore's Hindu and Sikh population.
Toba Tek Singh and other stories by Saadat Hasan Manto — Manto, who emigrated to Lahore from Bombay in 1947, wrote some of the most savage short stories in Urdu literature. His Lahore is the city in shock after partition. Many translations available.