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The village was founded when the Mangla Dam was created in 1967, inundating many villages. Some of the displaced people settled in what is now known as New Jhang. It started with only a handful of families but has flourished into a large village.
New Jhang is now densely populated and has many shops. There is also a brick factory, a marble factory, a carpet factory, several mosques and an orphanage.
- Villages of Jhelum by Manzoor Begum
- The Making of the Mangla Dam by S. Akhtar
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