List of capitals in Pakistan
Islamabad officially became the capital of Pakistan on 14 August 1967, exactly 20 years after the country's independence. Previously, Rawalpindi was the capital, designated in 1958. The first capital of Pakistan was the coastal city of Karachi, which was selected by Muhammad Ali Jinnah. Karachi was and still is the largest city and economic capital of Pakistan. It remained the seat of government until 1959, when the military president, Ayub Khan, decided to build a new capital in the north of Pakistan, near the general headquarters of the Pakistani Armed Forces at Rawalpindi.
History of the Islamic Republic of Pakistan
Indian Muslims from the United Provinces, Bombay, Central Provinces and other areas of India continued migrating to Pakistan throughout the 1950 and 1960s and settled mainly in urban Sindh, particularly in the new country's first capital, Karachi. Prime Minister Ali Khan established a strong government and had to face challenges soon after gaining the office. His Finance Secretary Victor Turner announced the country's first monetary policy by establishing the State Bank, the Federal Bureau of Statistics and the Federal Board of Revenue to improve statistical knowledge, finance, taxation, and revenue collection in the country. There were also problems because India cut off water supply to Pakistan from two canal headworks in its side of Punjab on 1 April 1948 and also withheld delivering Pakistan its share of the assets and funds of United India, which the Indian government released after Gandhi's pressurisation.