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Gujranwala was founded by Gurjars in the eighteenth century[13] however the exact origins of Gujranwala are unclear. Unlike the ancient nearby cities of Sialkot and Lahore, Gujranwala is a relatively modern city. It may have been established as a village in the middle of the 16th century.[14] Locals traditionally believe that Gujranwala's original name was Khanpur Sansi, though recent scholarship suggests that the village was possibly Serai Gujran instead - a village once located near what is now Gujranwala's Khiyali Gate that was mentioned by several sources during the 18th-century invasion of Ahmad Shah Abdali.[7]
The influx of Muslim refugees into Gujranwala drastically altered the city's form. By March 1948, over 300,000 refugees had been resettled in Gujranwala District.[25] Many refugees found post-Partition Gujranwala lacking in opportunities, causing some to move south to Karachi.[25] The refugee population mostly settled in localities that were mostly non-Muslim, like Gobindgarh, Baghbanpura and Nanakpura.[25]

Suburban districts were rapidly laid, including Satellite Town in 1950, which was designed mostly to house wealthy and upper-middle-class refugees.[25] D-Colony was built in 1956 for poorer Kashmiri refugees,[25] and Model Town in the 1960s.[7] The city experienced strong industrial growth during this period. In 1947, there were only 39 registered factories - a number which rose to 225 by 1961.[25] The city's colonial-era metal-working industry continued to grow, while the city became a centre of hosiery manufacturing that was run by refugees from Ludhiana.[25] The city's jewellery-trade had been run by Hindus but came under the control of refugees from Patiala.[25]

Gujranwala's economy continued to grow into the 1970s and 1980s.[7] New development continues, such as the opening of a 5,774-foot long flyover that functions as an elevated urban expressway,[7] as well as the nearby Sialkot International Airport which serves the entire Golden Triangle region, and is Pakistan's first privately owned commercial airport.[26] Institutions of higher learning have also been established in the city since independence. The Sialkot-Lahore Motorway, opened in 2020, passes near Gujranwala.
Gujranwala is the 5th largest city in Pakistan by population. Since the 2000s the population growth rate of Gujranwala has averaged at 3.0%. The population growth rate is projected to slow down to 2.51% by 2035.[31]
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