Investment Prospective in

Azad Jammu & Kashmir

About AJK
The state of Azad Jammu and Kashmir lies between longitude 73o – 75o and latitude 33o – 36o and
comprises an area of 5134 square miles (13,297 square kilometers). AJK falls within the Himalayan
orogenic belt. As such, its topography is mainly hilly and mountainous characterized by deep ravines,
rugged, and undulating terrain. The northern districts (Neelum, Muzaffarabad, Hattian, Bagh, Haveli,
Poonch, and Sudhnoti) are generally mountainous while southern districts (Kotli, Mirpur, and Bhimber)
are relatively plain. The mountain ecosystems are relatively unstable and have low inherent productivity.
Within this fragile environment, however, there is a great variety of ecological niches upon which people
base their livelihood. Small land holdings and scarcity of cultivable land are the main factors limiting on-
far income. The area is full of natural beauty with thick forest, fast flowing rivers and winding streams.
Main rivers are Jhelum, Neelum and Poonch.

Azad Kashmir is divided into three divisions (Muzaffarabad, Poonch & Mirpur) and ten administrative
districts with Muzaffarabad as the capital of the State. The Muzaffarabad Division comprises of
Muzaffarabad, Hattian and Neelum, Poonch Division comprises of Bagh, Haveli, Poonch & Sudhnoti
districts whereas Mirpur Division consists of Mirpur, Kotli & Bhimber Districts. These ten districts are
further divided into 32 Subdivisions, 189 Union Councils and 1771 Revenue Villages. There are 5
Municipal Corporations, 13 Municipal Committees, 18 Town Committees and 31 Markaz Councils, which
are administrated by the LG&RD Department.
About AJK
Key facts AJK Districts and Area
Area 13,297 Sq.Km
Cultivated Land Cultivated Land 1,642 1,516

Villages 1771
Population 4.361 millions

Population Growth Rate 2.41% 854

Unemployment Rate per Annum 14.4%

Literacy 74% 1,862

Enrollment rate Primary Boys 98%

Bhimber
Enrollment rate Primary Girls 90%
Kotli
Road density .64(km/sq. km)
Mirpur
Infant Mortality Rate(per 1000) 58
Sudhnuti
Population per hospital bed 1309 1,010 Poonch
Population per doctor 4916
Havel i
3,621
Maternal Mortality Rate (MMR) 201
Bagh
Immunization Coverage 94% 569 Neel um
Per capita power availability (KWH) 353
Hattian
Rural/Urban ratio 88:12 855 Muzafarabad
Per capita income (per annum) US$ 1512
598
770
Investment Avenues in AJK
Investment Avenues in AJK

Azad Jammu & Kashmir (AJ&K) is blessed with abundant natural resources i.e. water, minerals, forests, places of tourist Solarization of universities
attractions and above all the dynamic educated youth. The development vision of the Government of AJ&K reflects the
aspirations of the people and firm resolve of the government to ameliorate the socio-economic conditions in the State. The
people of AJ&K acknowledge with thanks the generous and continued support extended by the Government of Pakistan despite
prevalent resource constraints and energy crises in the country. Solarization of Hospitals

The State of Azad Jammu & Kashmir by virtue of its topography, meteorology, hydrology & administrative setup provides huge
opportunities of investment in various sectors. Keeping in view the investment potential in AJK the Government is encouraging
investment in Industries like Food, solar power generation, Hydro power generation, Ready made garments, furniture and plastic Setting up of Solar Park
products in the area.

Hydro Projects by AJKPDO

Setting up of Special Economic Zones for supporting local industry in AJK for the purpose of investment. Tourism is one of the
most important industry which can be developed by development of tourist sites and required infrastructure.

Azad Kashmir has huge potential for investment and there is huge gap because of under utilization of potential resources. One
Setting up of Special Economic
example of such under utilization is power sector, one of the major problems entire world is facing in provision of energy for Zones
household, industry and transport etc. These resources suffer lack of physical resource input

Development of Tourism Industry

Solarization of AJK Universities and Hospitals
§ AJK Government shall setup Energy
Efficiency and Conservation Agency (AJK
EECA)
§ AJK EECA shall setup up following pilot
projects AJK by solarizing solarizing one main
university and one major hospital in AJK.
§ This will reduce the electricity bills of the
university and hospital and they will eventually
become self sufficient
§ Later on this programme can be adopted by
other universities and hospitals of AJK.
§ Moreover, lower temperature in AJK will result
in increased generation.
§ This step will also create employment in AJK.
Here is a list of major 5 universities in AJK :
1) University of Azad Jammu and Kashmir (UAJK) Muzaffarabad, Azad Kashmir
2) Mirpur University of Science and Technlogy (MUST) Mirpur Azad Kashmir
3) University of Poonch (UPR) Rawalaot Azad Kashmir
4) University of Kotli (UOK) Kotli, Azad Kashmir
5) Women University Azad Jammu and Kashmir (WUAJK) Bagh, Azad Kashmir
Here is a list of major 10 hospitals in AJK :
1) DHQ Hospital Mirpur AJK.
2) DHQ Hospital Bhimber AJK.
3) DHQ Hospital Kotli AJK.
4) DHQ Hospital Muzaffarabad AJK.
5) DHQ Hospital Bagh AJK.
6) DHQ Hospital Haveli AJK.
7) DHQ Hospital Rawalakot AJK.
8) DHQ Hospital Hajira AJK.
9) DHQ Hospital Neelum AJK.
10) DHQ Hospital Palandari AJK.
Setting up of solar park in AJK
Solar map of Pakistan

Solar power is in abundance in AJK. Specially the areas bordering Punjab has good
irradiance and plain land. Moreover, more generation is possible because of low
temperature in the area. Average maximum temperature ranges from 20°C to 32°C while
the average minimum temperature range is 04°Cto 07°C

AJK Government should announce a solar park in this area and set a pilot project, so that
private sector can later on use this model to set up solar projects over there. This step will
also create employment opportunities in the area.

Kotli is partially hilly, and Bhimber and Mirpur further south are plains and are similar to
agricultural regions of northern Punjab. Settlement size is larger here and rich in
agricultural production. These region are prefect for development of solar park and setting
up pilot solar power project.
Hydropower Projects in AJK Hydropower potential in AJK
Hydropower in projects are being set up be AJK Power. Hydropower carries low cost of
production, less environmental problems and is a sustainable source of energy; therefore it
should be preferred over other sources of consumable energy. Total hydel potential of
AJ&K is over 9,000 MW as shown in the map. Unfortunately, this potential and
environment friendly cheap source of energy could not be tapped due to non-availability of
required financial resources.

AJK Govt should do these project on Public Private Partnership (PPP) basis by undertaking
one pilot project on PPP mode. Later on the basis of experience in pilot project further
hydropower projects can also be undertaken un PPP model on the Given below list of AJK
PDO project planned and requiring investment under AJK Annual Development
Programme.
Name of Hydro/transmission projects PKR Million
3.22 MW Narrdigian Hydro Power Project District Jhelum Valley. 600
3.5 MW Khurshidabad Hydro Power Project District Haveli. 750
22.0 MW Jagran-IV Hydro Power Project, District Neelum 6280
4.90 MW Batdara Hydro Power Project District Muzaffarabad. 800
132 KV Transmission Line from Jagran to Nauseri Grid Station. (34km) 500
Special Economic Zones in AJK
Hydropower potential in AJK
Potential and commercial viability of proposed industrial units depend on their location.
Owing to close proximity to the market of Pakistan, districts Mirpur and Bhimber are most § Most of the industries estates of AJK are under
suitable locations for establishment of Medium and large scale industries. However, some utilized
§ There is need to develop Special Economic
opportunities for cottage / small & medium Industries are also available in Northern areas Zones, which should provide specific exemption
(Poonch & Muzaffarabad) of AJ&K in addition to investment in Mineral, Hydel, Tourism packages such as tax relief for certain period
and Housing Sectors of AJ&K. § Local industries should be promoted such as fruit
processing.
Detail of Existing Industrial Estates with graded plots is as under: § Public Private Partnership should be promoted
§ Govt. of AJK should set up on piolet project on
PPP basis
§ Later further PPP projects can be done on same
Name of Industrial Estates 100 50 25 08 04 02 01 model
Kanal Kanal Kanal Kanal Kanal Kanal Kanal § In this way Private sector will also be encouraged
New Industrial Area Mirpur 10 20 32 20 35 42 118 to set up industries in AJK
Small Industrial Estate Bhimber 25 29 64
Old Industrial Estate Mirpur 34 92 111
Mini Industrial Estate Muzaffarabad 13 42
Mini Industrial Estate Kotli 7 53
Mini Industrial Estate Rawalakot 17 43
Tourism development in AJK Investment Avenues in AJK Tourism
In AJ&K Tourism sector has great potential areas including scenic beauty, historical and § Hotels/Motels
archaeological assets, cultural heritage, religious tourism, mountain based adventure tourism, § Tourist Resorts/Skiing Resorts/Flying
mountaineering, trekking, summer camping & hikes, water based adventure tourism and para- Resorts
gliding. § Hiking/ Trecking/Camping sites
development
§ Recreational Parks/Zoos/Food
Investment Strategy Objectives for Pvt. Investment
Streets/Play areas/Chairlifts
§ Augmenting the role of Govt as regulator § Creating Conducive Environment for tourism § Adventure Tourism
§ Making calculated interventions in basic development § Base camps along sites
infrastructure. § Creation of Inter-Departmental Land bank § Heritage/Archeological sites handling
§ Incentives & concessions for private sector § Encourage Private investors for inclusive § Camp-site
§ Declaration of Tourism sector as “Tourism growth § Resorts(Skiing, fishing, flying etc)
Industry” § Economic growth through Value Chain § Village/ Eco tourism
§ State Tourism Policy favouring private investment businesses § Adventure activities
§ Maintaining Lands Bank of potential Tourist spots § Enhance role of financial institutions: financing § Archaeological site development
§ Building infrastructure to lease-out of tourism projects § Transport for Circuit touring
§ Encourage unsolicited proposals § Community mobilization through DMOs to § Amusement parks
§ Improving access to tourism destinations encourage local fraternity. § Chair-lift, cable cars etc
§ Integrate Different stake-holders to create one- § Gender balance via women entrepreneurship
window operation.
§ Promoting value-chain businesses such as
handicraft, furniture, agriculture, farming etc
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