The area experienced a revival in the 19th century when wealthy Hindu merchants redeveloped it during the British colonial period, revitalising its commercial importance as a hub for cotton fabric trade.

Today, it stands as a collection of dilapidated buildings along a single street, with ongoing restoration efforts aimed at preserving its rich historical legacy.

[1] Three distinct architectural styles, spanning two historical periods, are evident in Panam Nagar: Mughal, British colonial, and a hybrid form.

Buildings erected during this intermediary period generally retained the bold, dominant Mughal style whilst gradually incorporating contemporary European architectural features.

[7] Historical accounts suggest that the Panam area was part of the capital city of Sonargaon during Hindu rule in the late 13th century.

This coincided with Sonargaon's rise to prominence as a hub for cotton fabric trade, particularly muslin, under the British East India Company and colonial period.

[6][10] During this period, affluent Hindu merchants (taluqdars) settled in the area,[1] renovating ancient abandoned buildings that bore the hallmarks of colonial architecture.

Following the East Pakistan riots of 1964—during which miscreants looted buildings and destroyed valuable muslin—and the Indo-Pakistani War of 1965, the Hindu inhabitants migrated to India.

[2] However, the renovation work was criticised for destroying the archaeological beauty of the buildings and eventually stopped following opposition from local civil society and experts.

[11] On 13 August 2020, a six-person committee was formed, comprising university lecturers and architects, to provide their views and conduct research on a restoration project.