It is located in the Islamabad Capital Territory , though the area has historically been a part of the crossroads of the Punjab region and the North-West Frontier Province ( the Margalla pass being a historic gateway to the North-West Frontier Province , and the Pothohar Plateau historically is a part of the Punjab region ) . Islamabad is located in the Pothohar Plateau in the north of the country , within the Islamabad Capital Territory . The region has historically been a part of the crossroads of Punjab and Khyber Pakhtunkhwa with Margalla pass acting as the gateway between the two regions .