Being a secular socialist party, which had strongly opposed the creation of the state Pakistan, the PSP found itself politically isolated and with little mass appeal.
The PSP found it difficult to compete with the Islamic socialism that Liaquat Ali Khan professed to in 1949.
[5] Initially the Indian Socialist Party, which was fiercely opposed to the Partition of India, wanted to retain its organisation in the areas that were to become parts of Pakistan.
Mobarak Sagher, another National Executive member who was imprisoned at the time, was designated to organise the party in the North-West.
[6] Once Partition, and the communal violence it brought along, was a fact the idea of a united Indo-Pakistani party was abandoned.
The majority of party members in West Pakistan, including Prem Bhasin, fled to India.
Furthermore, the Rawalpindi meeting stated that the Pakistani socialists would advocate Kashmiri integration with Pakistan ahead of such a plebiscite.
Other board members were Mobarak Sagher, Munshi Ahmad Din, Siddique Lodhi and Amir Qalam Khan.
In December 1947 the board held a meeting in Lahore, at which it was decided to convene a founding conference of the party on 29–31 January 1948, in Karachi.
The Karachi conference, constituted the Pakistan Socialist Party and elected a National Executive Committee.
Two months later, at Munshin Ahmad Din was elected to the Executive of the Indian Socialist Party at its national conference in Nasik.
In a short span, the Executive suffered yet another defection, as Lodhi resigned due to ill health.
Two additional persons, Syed Mohammad Yusuf Rizvi and Khwaja Zahoor Din, were inducted in the Executive.
The three Hindu legislators elected were Maharaj Trailokyanath Chakravarty, Pulin De and Deben Ghosh.
One Muslim party member, Moulana Altaf Hussain, was elected on an Awami League ticket.
This reform was intended to increase the party membership, but in West Pakistan the few newcomers were generally communist infiltrators who were soon expelled.