Commissionerate for Afghan Refugees was established in 1980 at Islamabad under the Administrative and Financial Control of Ministry of States & Frontier Regions (SAFRON). Huge influx of Afghan population had crossed the borders and arrived in Pakistan since 1979 as a result of Soviet invasion and  later factional fighting  in Afghanistan. Afghan refugees settled throughout country due to which Afghan refugee camps were established in KPK, Baluchistan and Punjab. The Commissionerate for Afghan Refugees, Punjab (CAR- Pb) was established in 1982 in Lahore with its Afghan Refugees camp at village kot Chandna, Tehsil Isa Khel, District Mianwali.

CAR Punjab is mainly responsible for execution of the Federal Government policies regarding the administration of Afghan Refugees in Punjab. The Commissionerate is mainly funded by UNHCR and Government of Pakistan. The Commissionerate for Afghan Refugees is also coordinating in relief work carried out by various national and international aid agencies involved in different projects.