It is currently deployed in Lahore as part of IV Corps, and is responsible for the defence of that city and the surrounding areas.

Prior to this, the army chief at the time, General Muhammad Musa, had been calling for raising two new divisions;[1] this was denied by the government citing a benign security environment, the lack of funds and the general reluctance of the US to fund new risings under the foreign military assistance scheme.

[2] After the 1962 Sino-Indian War, the Indian army underwent a substantial increase in numbers and capability and, therefore, the Pakistani government reversed its position and the division was raised by utilising reserve GOC, Major General Abdul Hamid Khan.

The two formations successfully managed to capture Khem Karan, though further attacks by the 1st Armoured were checked by the Indians.

At the same time as the fighting in Khem Karan, the Indian offensive towards Sialkot was making progress at the Battle of Chawinda and the 1st Armoured was withdrawn to reinforce the Pakistani forces in that sector.