Mohatta Palace, one of Karachi’s most impressive monuments, was built by Seth Shivrattan Mohatta, a prominent businessman from Marwar in Rajhastan in 1927, who wanted a summer house by the seaside in Karachi which way then was viewed as a seaside resort. The Mohatta Palace designed by Agha Hussain Ahmed who though settled in Karachi was originally from Rajhastan, sought to recreate the Anglo Mughal style that had developed in Rajhastan and the building built of local yellow Gizri stone and imported pink Jodhpur stone, reflects some elements of the palaces of Rajhastan. Mohatta palace was originally acquired by the Government of Pakistan in 1947 to house the Ministry of Foreign Affairs.

Miss Fatima Jinnah, sister of Quaid-e-Azam Mohammad Ali Jinnah moved to Mohatta Palace in 1964 and after her death in 1967 her sister Shireen Bai lived here. With the passing away of Shireen Bai in 1980 the palace was sealed.

In 1995 it was purchased by the Government of Sindh for its conversion into a Museum devoted to the arts of Pakistan. As a result of the interest taken by the Government of Sindh who took over the ownership of the property and appointed an independent board of trustees headed by the Governor, to formulate recommendations on how best to adapt and use the palace. The trust was established to manage the property and ensure that it would not be sold or utilised for commercial or any other purpose other than that stipulated in the trust deed.

Funds for the acquisition of collections for the museum and the construction of an extension will be raised by the trustees through private and public grants, donations and other fund raising activities.

The Museum formally opened in 1999.