PWD Sporting Club was founded in 1954 as a recreational program by some sports-loving engineers of the Public Works Department.

[1] In the same year, PWD, led by the Pakistan national team's central defender, Nabi Chowdhury, participated in the Aga Khan Gold Cup.

They defeated Central Jail and Sindh Youngmen's Club by 8–0 and 5–1, respectively,[2][3] before losing 2–5 to Keamari Mohammedan prior to the quarter-final.

However, following the Independence of Bangladesh, they elected a new club committee led by two of their previous members, Abdul Rahim and Fazlur Rahman.

PWD earned promotion back to the top-flight as the 1984 Second Division champion, with the help of their 16-goal striker, Mostafizur Rahman Mostak.

In 1985, Mostak helped PWD remain in the top-flight by scoring 9 goals as the club finished sixth, 13 points clear of relegation.

[5] During the 1989–90 season, the club coached by former Sri Lanka national team captain, Pakir Ali, finished fourth in the league.