"We moved over in 1991 ... for a better life.
"Our village in Kashmir, Pakistan is right on the border [with India].
"Since Pakistan separated [from India], there have been several wars ... and this is why we decided to leave."
Coming from a country like Pakistan, where the way of life is largely directed by religious beliefs, New Zealand seemed so liberal, she said.
"It was quite difficult growing up, especially because my family are quite traditional."
Miss Mughal, who attended Aorere College in South Auckland, no longer counts herself as a practising Muslim. She credits her strict upbringing as a driving force behind her decision to enter the competition.
"I am one of eight kids and the eldest girl in the family.
"It was so hard trying to make my parents understand that living in New Zealand was a world away from Pakistan.
"Even the simple things, like playing sports and hanging out with friends was so challenging."
Entering Miss Pakistan World demonstrates the bringing together of two cultures - Kiwi and Pakistani, said Miss Mughal.
Pageant organiser Sonia Ahmed said many contestants had been threatened for taking part.
"Every year since 2003 there were always different kinds of threats.
"Some were against girls who went to international pageants because they represented Pakistan whereas some were against girls who wore bikinis," said Ms Ahmed. In 2008 the swimsuit round was removed because it caused controversy in the Muslim community.
Miss Mughal said: "[By competing] I'd like to show that I have found a balance between my Pakistani background and my Western life."