In 1946, a Cabinet Mission was sent to try and reach a compromise between Congress and the Muslim League, proposing a decentralized state with much power given to local governments, but it was rejected by both the parties.This also resulted in many communal riots in the South Asia.
In the 1940s, as the Indian independence movement intensified, an upsurge of Muslim nationalism helmed by the All-India Muslim League took place, of which Muhammad Ali Jinnah was the most prominent leader.:195–203 Being a political party to secure the interests of the Muslim diaspora in British India, the Muslim League played a decisive role during the 1940s in the Indian independence movement and developed into the driving force behind the creation of Pakistan as a Muslim state in the South Asia.
During a three-day general session of All-India Muslim League from 22–24 March 1940, a formal political statement was presented, known as the Lahore Resolution, which called on for the creation of an independent state for Muslims.
Three years later, the name “Pakistan” as the name of a separate state was proposed in a declaration made by Choudhary Rahmat Ali.
Like Iqbal, Bengal was left out of the proposal made by Rahmat Ali.
Independence Day (Urdu: یوم آزادی; Yaum-e Āzādī), observed annually on 14 August, is a national holiday in Pakistan, commemorating the day when Pakistan achieved independence and was declared a sovereign nation, following the end of the British Raj in 1947.
Pakistan came into existence as a result of the Pakistan Movement; the Pakistan Movement aimed for creation of an independent Muslim state by division of the north-western region of the South Asia and was led by All-India Muslim League under the leadership of Muhammad Ali Jinnah.
In 1946, Indian National Congress, being a secular party, demanded a single state.
The Muslim majorities, having disagreement with the idea of single state, gave stress to the idea of Pakistan, as a response to Congress’ demand for a single state.
On 14 August 1947, the new Dominion of Pakistan came into existence and Muhammad Ali Jinnah was sworn in as its first governor general in Karachi.
Everyone rejoiced the independence, but the atmosphere remained heated as communal riots marked the independence of Pakistan in 1947.