Is celebrating independence day allowed islamically ?

Peace Ma Mooli

No ... bringing in of religious act does not make it bid'a. Making the occassion itself into a religious act, is. By bringing in religious acts into it and making that a habit may turn the activity into a religious act in itself in future.

But the main concern is not the ibadah done as a result of the occassion it is the occassion itself. I don't think the creation of Pakistan is something to celebrate. It represents a Muslim loss!

However, we have it as a stark reminder a time to think and mend our ways not to rejoice and celebrate.