Claim: Lahore is a city.

Punjab -LRB- Urdu , Punjabi : , panj-āb , `` five waters '' : -RRB- , is Pakistan 's second largest province by area after Balochistan , and its most populous province with an estimated population of 101,391,000 as of 2015 . It is bordered by Sindh , Balochistan and Khyber Pakhtunkhwa , as well as the regions of Islamabad Capital Territory and the Azad Kashmir . It also shares borders with the Indian states of Punjab , Rajasthan , and Jammu and Kashmir . The provincial capital of Punjab is the city Lahore , a cultural centre of Pakistan where the country 's cinema industry , and much of its fashion industry , are based .   Punjab has been inhabited since ancient times . The Indus Valley Civilization , dating to 2600 BCE , was first discovered at Harappa . Punjab features heavily in the Hindu epic poem , the Mahabharata , and is home to Taxila , site of what is considered by many to be the oldest university in the world . In 326 BCE , Alexander the Great defeated King Porus at the Battle of the Hydaspes near Mong , Punjab . The Umayyad empire conquered Punjab in the 8th century CE . Punjab was later invaded by Tamerlane , Babur , and Nader Shah . Punjab reached the height of its splendour during the reign of the Mughal Empire , which for a time ruled from Lahore . Following a successful rebellion , Sikh-led armies claimed Lahore in 1759 . The administration of the Sikh Empire was based out of Lahore , until its defeat by the British . Punjab was central to the independence movements of both India and Pakistan , with Lahore being site of both the Declaration of Indian Independence , and the resolution calling for the establishment of Pakistan . The province was formed when the Punjab province of British India was divided along religious boundaries in 1947 by the Radcliffe Line after Partition .   Punjab is Pakistan 's most industrialised province with the industrial sector making up 24 % of the province 's gross domestic product . Punjab is known in Pakistan for its relative prosperity , and has the lowest rate of poverty amongst all Pakistani provinces . A clear divide is present between the northern and southern portions of the province ; with poverty rates in prosperous northern Punjab amongst the lowest in Pakistan , while some in south Punjab are amongst the most impoverished . Punjab is also one of South Asia 's most urbanized regions with approximately 40 % of people living in urban areas . Its human development index rankings are high relative to the rest of Pakistan .   Punjab is known in Pakistan for its relatively liberal social attitudes . The province has been strongly influenced by Sufism , with numerous Sufi shrines spread across Punjab which attract millions of devotees annually . The founder of the Sikh faith , Guru Nanak , was born in the Punjab town of Nankana Sahib near Lahore . Punjab is also the site of the Katasraj Temple , which features prominently in Hindu mythology . Several UNESCO World Heritage Sites are located in Punjab , including the Shalimar Gardens , the Lahore Fort , the archeological excavations at Taxila , and the Rohtas Fort .