 It is a junction between two contrasting sections of the city—Old Dhaka and New Dhaka—which lie, respectively, to its south and north.Developed in the 17th century during Mughal rule in Bengal, when Old Dhaka was the provincial capital and a centre of the flourishing muslin industry, it came to neglect and decay in early 19th century.In the mid-19th century, the Shahbag area was developed as New Dhaka became a provincial centre of the British Raj, ending a century of decline brought on by the passing of Mughal rule.