The idea of Bab-e-Pakistan was first conceived in 1985 by the President of Pakistan, General Muhammad Zia-ul-Haq in a meeting with Lt. Gen. Ghulam Jillani, Governor of Punjab who later issued a letter instructing to go ahead on the Project.

Bab-e-Pakistan was registered as a Trust in 1991 under the name and style of National Memorial Bab-e-Pakistan under the Societies Registration Act, 1860 with the objective to set up a befitting complex to provide a place where one could pay homage to those who perished in the march to freedom, people who passed through the perilous process and struggled but could not make it even to Walton. The basic aim is to commemorate those who in the words of Quaid-e-Azam were "the valiant fighters in our cause who readily sacrificed all they had, including their lives, to make Pakistan possible."

The practical steps for construction of the memorial and complex were taken in 2005 when a land measuring 117 acres at the prime location of Walton Road was vacated by Pak Army, Punjab Police and Punjab Boy Scouts Association and handed over to the Trust. The development work of the Trust was started under the supervision of Pak Army with the initial cost estimated to Rs 2447 million and March 31, 2012 was fixed for completion but due to some un-avoidable circumstances it could not be completed within the stipulated time period.

The Trust was dissolved and the Bab-e-Pakistan Foundation was created through promulgation of the Bab-e-Pakistan Foundation Act, 2014 to take over the Project for its completion and to fill the administrative vacuum caused by death of majority of members of the National Supreme Council of the Trust.