"The Hindus and the Muslims belong to two different religions, philosophies, social customs, and literature. They neither inter-marry, nor inter-dine together, and indeed they belong to two different civilizations which are based mainly on conflicting ideas and conceptions. Their aspects on life are different. It is quite clear that Hindus and Muslims derive their inspirations from different sources of history. They have different epics, their heroes are different, and they have different episodes. Very often the hero of one is foe of the other, and likewise, their victories and defeats overlap. To yoke together two such nations under a single state, one as a numerical minority and the other as a majority, must lead to growing discontent and the final destruction of any fabric that may be so built for the government of such a state."

The session began with Nawabzada Liaquat Ali Khan presenting the annual report on March 23, 1940. After the report, Maulana Fazlul Haq from Bengal, moved the famous Lahore Resolution, better known as the Pakistan Resolution, "…the areas in which the Muslims are numerically in a majority as in the North-Western and Eastern zones of India should be grouped to constitute 'Independent States' in which the constituent units shall be autonomous and sovereign." The resolution was seconded by Choudhry Khaliquzzaman who gave a brief history of the causes which led the Muslims to demand a separate state for themselves. Maulana Zafar Ali Khan, Sardar Aurangzeb Khan, Sir Abdullah Haroon, Nawab Ismail Khan, Qazi Mohammad Isa and I.I Chundigar supported it, among others.

The resolution passed in Lahore on March 23, created a scare in the minds of the Congress and the Hindus. They could see that the Muslim League had now openly advocated the division of India into "Independent States." The Quaid had anticipated the Hindu reaction and had taken organizational steps to face the opposition of the Hindus. He himself set an example of calm courage and an iron determination to lead the Muslims to their cherished goal of freedom. The Pakistan Resolution released the potential creative energies of the Muslims and even the humblest amongst them made his contribution for the achievement of Pakistan. The Quaid knew that without a well-defined goal that could be understood even by the simplest Muslim, there could be no real awakening of the Muslims. The Pakistan Resolution gave them a legible, objective and reachable goal: Pakistan.

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