Pakistan and India came into existence as independent states in August, 1947. The principle of partition was specified in the plan : The all Muslim majority areas were to constitute part of Pakistan and similarly the Hindu majority areas were to go to India. Besides, the 565 princely States at that time including the State of Jammu and Kashmir were given the option either to join Pakistan or India. Such joining to either State was to be determined by the geographical contiguity and communal composition of the population. The State of Jammu and Kashmir with a 77 % Muslims majority (according to 1941 Census) should have acceded to Pakistan.

The 58 years old dispute between Indian and Pakistan unfortunately still hangs fire but this fact has not stopped the Government of Pakistan from going all out in helping the development and prosperity of Kashmiri terriorities. The Azad Jammu and Kashmir Council (AJK Council) is that vital constitutional link, in the interim which serves as a conduit for the purpose.

The territory is known for its un-spoiled scenic charm, hydro power , mineral wealth besides being the most attractive tourist destination.