The economy of Kashmir is largely a developing one. The
per capita income and
provincial GDP estimates of
Azad Kashmir
Azad Jammu and Kashmir (; ), abbreviated as AJK and colloquially referred to as simply Azad Kashmir, is a region administered by Pakistan as a nominally self-governing entitySee:
*
*
* and constituting the western portion of the larger Ka ...
are comparatively underrated when compared with development in other regions of the country although Azad Kashmir notably has a literacy rate that is substantially above the national average.
Kashmir: The Economics of Peace Building
' Azad Kashmir's economy is heavily dependent on
agriculture, but also relies on
remittances
A remittance is a non-commercial transfer of money by a foreign worker, a member of a diaspora community, or a citizen with familial ties abroad, for household income in their home country or homeland. Money sent home by migrants competes with ...
sent each year by members of the large
Kashmiri diaspora. The Kashmiri diaspora in the United Kingdom have contributed greatly to the development of Azad Kashmir through their in-flow of remittances. In the southern districts, many men have been recruited into the
Pakistani Armed Forces. Other locals travel to countries in Europe or the Middle East where they work in labour-oriented jobs. The local tourism industry has potential although is underdeveloped.
Challenges faced by Azad Kashmir's economy include the devastating
2005 Kashmir earthquake
The 2005 Kashmir earthquake occurred at on 8 October in Pakistani-administered Azad Kashmir. It was centred near the city of Muzaffarabad, and also affected nearby Balakot in Khyber Pakhtunkhwa and some areas of Indian-administered Jammu and ...
, the effects of which the region is still recovering from.
As of 2022, GDP of Azad Jammu and Kashmir was estimated to be , giving per capita income of 1512 dollar USD, above from in Sept 2013, when Azad Kashmir's GDP was estimated at $3.2 Billion.
References
Azad
{{Pakistan-stub