Daily Khabrain was established following a split in the editorial staff of Daily Jang's Lahore office during the late 1980s.[1] Zia Shahid, among others, left to create Daily Pakistan, a publication funded by a group of investors known as members.[1]
Within a year, differences arose between Shahid and the senior editorial staff, prompting him to initiate Daily Khabrain in 1992.[1][3] In this new venture, he transformed the business model, requiring potential reporters and distributors to purchase an upfront membership.[1]
In 1997, Daily Khabrain focused its efforts against Mohammed Yusuf Ali from Lahore, alleging that he proclaimed himself a prophet.[1] The term "kazzab", or liar, was used to label him.[1] In 2000, he was convicted on blasphemy charges and sentenced to death but was murdered in prison before the sentence could be carried out.[1] Purportedly, a reporter from Daily Khabrain was involved in smuggling a weapon into the prison for the murder.[1]