Pakistan faced many serious problems after gaining independence, including communal riots and refugees arriving from India, trade issues that hurt the economy, and problems with canal water distribution. Some key initial challenges were establishing a new administration, dividing financial and military assets with India, integrating princely states like Junagadh, Hyderabad, and resolving the conflict over Kashmir. Pakistan had to overcome difficult circumstances as it worked to set up a viable and prosperous new state after independence.