Congestion persists despite various demand management techniques, particularly for handling recurrent congestion. However, non-recurrent congestion from events like VIP movements poses unique challenges, especially during peak hours. This study investigates the environmental and economic impacts of road blockages due to VIP movements in developing countries, focusing on Pakistan. Considering practiced standard operating procedures associated with VIP movements, this study finds significant delays and economic burdens in debt-ridden economies. It uses discrete choice modeling and microsimulation techniques to evaluate the value of travel time and quantifies road blockage effects on fuel consumption, travel time, and carbon emissions. Data from central blockage locations in Rawalpindi and Islamabad reveal a value of travel time estimated at 1.77 USD/h, with income and gender significantly influencing mode choices during VIP movements. Moreover, road blockages exceeding two minutes substantially negatively impact the environment and economy, particularly in developing nations. Urgent action is needed for effective mitigation strategies and sustainable transportation policies to address the detrimental effects and promote alternative transportation modes. Recommendations include limiting VIP blockages to a maximum of two minutes and implementing policies to discourage private car usage. Despite limitations, the study emphasizes the critical role of sustainable transportation policies in enhancing the well-being of road users in developing nations.