This character is a Other Letter and is mainly used in the Arabic script.
The glyph is not a composition. It has no designated width in East Asian texts. In bidirectional text it is written as Arabic letter from right to left. When changing direction it is not mirrored. The word that U+06BA forms with similar adjacent characters prevents a line break inside it. The glyph can be confused with one other glyph.
The Wikipedia has the following information about this codepoint:
Nūn ġunnā, (Urdu: نُون غُنَّہ; Unicode: U+06BAںARABIC LETTER NOON GHUNNA) is an additional letter of the Arabic script not used in the Arabic alphabet itself but used in Urdu, Saraiki, and Shahmukhi Punjabi to represent a nasal vowel, [◌̃]. In Shahmukhi, it is represented by the diacritic ٘◌.
It is a nasal vowel used in many Indo-Aryan languages and Iranian languages. It is represented by the International Phonetic Alphabet by the sound of ⟨◌̃⟩. It is a dotless noon. In Saraiki and Balti, nūn ġunnā is sometimes written as ن٘.