Gujrat is situated on the bank of Chenab River, situated about 120 kilometres (75 mi) north of Lahore, the capital city of Punjab province, and 150 kilometres (93 mi) from Islamabad, the capital of Pakistan. Prominent nearby locations include Jalalpur Jattan,Jhelum,Gujranwala, Mandi Bahauddin, Sialkot, Lalamusa and Bhimber-Azad Kashmir. The city is surrounded by many villages and towns, which supply significant labour to the local market.