It largely mirrored the Civilian Emergency Administration earlier appointed by President Manuel Quezon to administer the open city status of Manila and composed by the same officers that comprised the latter PEC.

The PEC was created as the provisional caretaker government of the City of Greater Manila and eventually of the whole Philippines during the Japanese occupation of the country during World War II.

The KALIBAPI was established to aim at the mental education, moral regeneration, physical invigoration, and economic rehabilitation of the Philippines under the guidance of the Japanese Military Administration.

Three days after establishing the National Assembly, its inaugural session was held at the pre-war Legislative Building and elected Benigno Aquino Sr. as its first Speaker and José P. Laurel as President of the New Philippine Republic.

The Philippine Republic was immediately recognized by Japan, and in the succeeding days by Germany, Thailand, Manchukuo, Burma, Croatia and Italy while neutral Spain sent its "greetings."