Latifabad is named after the noted Sindhi Sufi poet, Shah Abdul Latif Bhittai. It was formed as an extension to the city of Hyderabad to occupy migrants from across the border after the 1947 partition of the Sub-Continent, along with the town of Qasimabad.

The locals that occupied the town at its inception were ethnically of a mixed population but as the city experienced its worst ethnic riots between Sindhis and Mohajirs in the 1980s, the city was divided into Sindhi occupying the town of Qasimabad and the Mohajirs settling down in Latifabad.

Serving an ethnic majority of the Mohajir community, Latifabad turned into a fertile land for the offshoots of the political party, the Mohajir Qaumi Movement later named Muttahida Qaumi Movement, to grow. With the spread of the political party's actions across the area, land in Latifabad was further divided into sectors, sub-classifying it into numbered units. For political rallies, MQM would specify areas in their sector notation rather than the numbered unit. To this date, the classification continues yet people prefer using the numbered units.

Latifabad has a large concentration of Urdu speaking people, known as the Mohajirs. Latifabad is divided into twelve units, instead of blocks, each numbered. Each unit has its own hospital and number of schools along with residential complexes. At the time of its creation, the town of Latifabad was hailed as being the first ever planned town in Pakistan since its independence.

The town is spread across the southern span of the Hyderabad city and hence referred to as the city's south end. Being a relatively modern town, Latifabad lacks historical landmarks but holds remnants of the blackened history of the ethnic riots in forms of distorted architecture almost everywhere.

The largest mental asylum or hospital for the mentally ill in Pakistan (some people deem it the largest in Asia) named after Sir Cowasji Jehangir Readymoney (1812-1878), civil engineer and master constructor of Bombay, the Sir Cowasji Jehangir Institute of Psychiatry holds ground in Latifabad unit 3, commonly known to the locals as Giddu Bandar. Other hospitals in Latifabad include the St. Elizabeth Hospital, Majee Hospital, Bhittai Hospital and Red Crescent (Hilal-e-Ahmar) Hospital.

The Board of Intermediate Secondary Education, Hyderabad, the body of the Government administering the educational standards in the city has their headquarters housed in unit 9 in Latifabad.

Unit 8 has a bazaar-cum-shopping center called Siddiqui Centre that sells clothes, shoes and bangles, product native to the city. Visitors and shoppers alike visit unit 8 before Eid to buy clothes and gifts. The bazaar is a convenient and economical place to shop. Units in Latifabad has its own administrative unit which works under the Hyderabad District Administration

Mohatta House is situated in Latifabad U6D in the vicinity of the district nazim's house. It has aged over a 100 years. Unit 6 also is the home to the Hyderabad Board of Education who have built a stadium to commemorate its presence. Most of the Inter-school and -collegiate tournaments are played.