It is an industrial centre for trade in cotton and other agricultural commodities. Hosiery, textiles, chemicals, and soap are the major manufactures.
A large Pakistan Air Force base is located in the city.
There are several theories as to the origins of the name. It may be derived from the Sanskrit 'svargadhama', meaning 'heavenly abode'. Though this would have given rise to the Punjabi sargdham. Other theories suggest that the name Sargodha is derived from that of a Hindu resident Godha. Also it is believed that there was an old pond in the middle of the town where the old Hindu sadhu Godha used to live. In Punjabi the word for pond is sar hence sargodha, "The pool of godha". Again this can't be accepted as the order of words doesn't refelect Punjabi usage, e.g., Amritsar, "the pool of nectar." The place would have been called Godhsar if anything. The etymology must lie in sar + godha, with sar beinng the adjective and godha the noun.
Just over a century ago, there was a well owned by a Hindu Godha. The well was known as Gol Khuh, Punjabi "round well, and travellers used it as a resting place. As time passed the well eventually went out of use and a market evolved around it. There is a market at the place where Gol Khuh used to exist and a grand mosque above the market and it is known as "Gol Chowk", which is the centre of downtown Sargodha today.
Sargodha was a small town at the beginning of the British Raj but, due to its geographical location, the British Royal Air Force built an airport there. It took on greater importance after the partition for the Pakistan Air Force.
Shahpur, which is now a tehsil of Sargodha District, was the district at that time. Most parts of the tehsil Sillanwali and Kirana Pahari region were part of Jhang district and were included later during the British Raj in Sargodha district.
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