Due to agricultural potential of the region a Mandi town was founded in 1920 by the British Government. This was named as Mandi Bahauddin because of a nearby small village Pindi Bahauddin. i.e. Mandi near Pindi Bahauddin. Later on, due to the expansion of Mandi Bahauddin, Pindi Bahauddin merged in the town and became a part of Mandi Bahauddin Town.

Malakwal town is in Mandi Bahauddin district in the Punjab province of Pakistan. Malakwal was declared as small town in 1924 and raised to the level of Town Committee in 1928. After the implementation of Punjab Local Government Ordinance 2001, it was given the status of TMA.