Phagwara was built in the times of Shah Jahan, mainly as a trading centre or market town. Over time, some people of Phagwara started farming and Phagwara took on a rural character. Phagwara Sharki covers the original rural Phagwara, which now is only covered by the area surrounding Sukhchainiana Gurdwara (Sukhchain Nagar) where some people continue to farm the land.