Bahawalpur is located in the southeast of Punjab province, the capital, Bahawalpur city, is 889 kms from Karachi. The region surrounding Bahawalpur to the west, called Sindh, is a fertile alluvial tract in the Sutlej River valley that is irrigated by floodwaters, planted with groves of date palms, and thickly populated. The chief crops are wheat, gram, cotton, sugarcane, and dates. Sheep and cattle are raised for export of wool and hides. East of Bahawalpur is the Pat, or Bar, a tract of land considerably higher than the adjoining valley. It is chiefly desert irrigated by the Sutlej inundation canals and yields crops of wheat, cotton, and sugarcane. Farther east, the Rohi, or Cholistan, is a barren desert tract, bounded on the north and west by the Hakra depression with mound ruins of old settlements along its high banks; it is still inhabited by nomads. The principal inhabitants of the region surrounding Bahawalpur are Arain, Jat and Balochi people. There are many historical sites in the area, including Uch, southwest of Bahawalpur, an ancient town dating from Indo-Scythian (Yüeh-chih) settlement (c. 128 BC to AD 450).
Bahawalpur is also an important agricultural training and educational center. Soap making and cotton ginning are important enterprises; cotton, silk, embroidery, carpets, and extraordinarily delicate pottery are produced in this region. Factories producing cottonseed oil and cottonseed cake were built in the 1970s. It is an important marketing centre for the surrounding areas and is located on the crossroads between Peshawar, Lahore, Quetta and Karachi. Bahawalpur is also known for its distinctly embroidered slippers and shoes and the filigree pottery which is made here.
The city of Bahawalpur is located favourably for commerce, lying at the junction of trade routes from the east, south-east, and south. It is a centre for trade in wheat, cotton, millet, and rice grown in the surrounding region. Dates and mangoes are also grown here. Canals supply water for irrigation. The principal industries are cotton ginning, rice and flour milling, and the handweaving of textiles.