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It is situated on the water routes. So it was the centre of local trade even in the pre-Mughal period. The decline of the political power of the nawabs of Bengal and the rise of the East India Company led to the waning of the administrative importance of Dhaka in the late 18th century. The declining fortune of the city, as noted above, had a catastrophic impact upon the population and physical boundaries of Dhaka.
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However, the 1840s proved also to be the beginning of a new era in the history of the city.The administrative importance of Dhaka further grew dramatically during the years 1905-11 when it was made the capital of the new province of East Bengal and Assam.
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On 16th December 1971, East Pakistan became an independent country and came to be known as Bangladesh. Since 1971 the pressure on Dhaka has been enormous.
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The growth rate of population is huge. There is also large floating population, the pressure of which has resulted in the growth of slums in all vacant pockets in between the built-up areas.
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From a small suburban town Dhaka has emerged as a Megacity in course of about four centuries.
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