Independent Pakistan

By the time of independence of Pakistan in 1947, Karachi had become a bustling metropolis with beautiful classical and colonial European styled buildings, lining the city’s thoroughfares. Karachi was chosen as the capital of Pakistan, which at the time included modern day Bangladesh, a region located more than 1,000 km (620 mi) away, and not physically connected to Pakistan. In 1947, Karachi was the focus for settlement by Muslim migrants from India, who drastically expanded the city's population and transformed its demographics and economy. In 1958, the capital of Pakistan was moved from Karachi to Rawalpindi and then in 1960, to the newly built Islamabad. This marked the start of a long period of decline in the city, marked by a lack of development. Karachi had both a municipal corporation and a Karachi Divisional Council in the 1960s, which developed plans for schools, colleges, roads, municipal gardens, and parks. The Karachi Divisional Council had separate working committees for education, roads, and residential societies development and planning.During the 1960s, Karachi was seen as an economic role model around the world. Many countries sought to emulate Pakistan's economic planning strategy and one of them, South Korea, copied the city's second "Five-Year Plan" and world Financial Centre in Seoul is designed and modeled after Karachi.
The 1970s saw major labour struggles in Karachi's industrial estates (see Karachi labour unrest of 1972). The 1980s and 1990s saw an influx of refugees from the Soviet war in Afghanistan into Karachi; they were followed in smaller numbers by refugees escaping from Iran.Severe ethnic tensions between the Muhajir and other native groups (e.g. Sindhis, Punjabis, Pashtuns and others) erupted and the city was wracked with political and ethnic violence.
Today, Karachi continues to be an important financial and industrial centre and handles most of the overseas trade of Pakistan and the world, mainly the Asian countries. It accounts for a lion's share of the GDP of Pakistan,and a large proportion of the country's white collar workers.