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The city has the highest standard of living in Pakistan and is home to a large number of affluent residents. Islamabad is ranked high on the Human Development Index, with an HDI of 0.739 (2014).The name "Islamabad" was derived from two words, Islam and abad , meaning "City of Islam". The city was known as Peshawar during British rule before 1947; it became part of Pakistan in 1948 after independence. In 1981, the capital territory adopted its present name which was previously spelled Islamabad in English .Islamabad Capital Territory , located on the Pothohar Plateau at 1,052 m (3,451 ft) above sea level near Rawalpindi District's border with Punjab Province , covers 596 km2 (230 sq mi), making it one-fifth larger than Singapore . It includes three zones: Zone I consists entirely or partly within Municipal Corporation limits; Zone II consists entirely or partly outside Municipal Corporation limits but inside Capital Territory ; while Zone III lies completely outside both sets' boundaries.