Modern Dhaka is the center of political, cultural and economic life in Bangladesh. Although its urban infrastructure is the most developed in the country, Dhaka suffers from urban problems such as pollution, congestion, and lack of adequate services due to the rising population. In recent decades, Dhaka has seen modernization of transport, communications and public works. The city is attracting large foreign investments and greater volumes of commerce and trade. It is also experiencing an increasing influx of people from across the nation.
Shahbag (also Shahbaugh, Bengali: শাহবাগShabag; [ˈʃabaɡ]) is a major neighbourhood and a police precinct or Thana in Dhaka, the capital of Bangladesh. It is also a major public transport hub, and serves as a junction between two contrasting sections of the city—Old Dhaka and New Dhaka—which lie, respectively, to its north and south. Developed in the 17th century during Mughal rule in Bengal, when Old Dhaka was the provincial capital and a centre of the flourishing muslin industry, the neighborhood was originally named Bagh-e-Badshahi (Persian for Garden of the Master Kings), but later came to be called by the shortened name Shah (Persian:شاه, king) Bagh (Persian: باغ, garden). In the mid-19th century, the construction of buildings in and around Shahbag ushered in the development of New Dhaka as a provincial centre of the British Raj and ended a century of decline brought on with the passing of Mughal rule.