News Detail
Event Title: Senator Professor Sajid Mir, presiding over a meeting of the Senate Standing Committee on Kashmir Affairs and Gilgit-Baltistan at Parliament House Islamabad
Event Date: 2025-01-13
A meeting of the Senate Standing Committee on Kashmir Affairs and Gilgit-Baltistan was held today under the chairmanship of Senator Prof. Sajid Mir at Parliament House, Islamabad. The session focused on the immense tourism potential of Azad Jammu and Kashmir (AJK) and Gilgit-Baltistan (GB), with particular emphasis on ongoing infrastructure developments and strategic policies designed to enhance the region’s tourism sector.
The committee while taking briefing on the development projects of Gilgit-Baltistan focused on financial allocations for both the Annual Development Program (ADP) and the Public Sector Development Program (PSDP) for fiscal year 2024-25, with particular emphasis on ongoing projects and the region’s emerging economic opportunities.
It was briefed that for the fiscal year 2024-25, Gilgit-Baltistan has secured a significant funding boost for its development projects. The Annual Development Program (ADP) has a total allocation of PKR 20 billion, with PKR 7.15 billion already released. However, the committee also noted an outstanding throw-forward of PKR 138 billion for the ADP, highlighting the long-term nature of these investments.
The Public Sector Development Program (PSDP) for the same period has been allocated PKR 13.5 billion, which includes PKR 4 billion dedicated to Prime Minister’s initiatives. The outstanding throw-forward for the PSDP stands at PKR 99 billion, demonstrating the scale and ambition of ongoing government commitments to the region's development.
Among the most notable energy projects are the 54 MW Attabad Hydropower Plant and the 34.5 MW Harpo Hydropower Plant in Skardu. These projects are poised to play a pivotal role in addressing the region’s energy needs and providing clean power to local communities.
Additional Chief Secretary of Gilgit-Baltistan (GB) provided a comprehensive briefing on the region’s international collaboration. Highlighting key sectors where China is actively involved, the briefing underscored the complexities of energy and tourism development, as well as the need for greater financial support from Islamabad.
Chief Secretary Gilgit-Baltistan emphasized that while China is working on critical infrastructure projects in the region, especially in agriculture, trade, and special economic zones, Chinese investors have expressed concerns about the lack of sovereign guarantees for power projects. The high tariffs in Gilgit-Baltistan’s energy sector have further deterred investment from Chinese companies. This issue remains a significant roadblock to expanding energy production in the region, where the summer demand for power exceeds supply by over 100 MW. The demand in the summer reaches 254 MW, while local production can only generate 122 MW, highlighting the pressing need for new energy projects.
During the meeting, committee members were briefed on the current state of tourism infrastructure in AJK, which includes 30 tourist lodges and motels, tourist information centers, welcome booths, and over 500 privately-operated hotels and guest houses. The committee was also informed about the operational Tourist Helpline (#1422), designed to assist and guide visitors to the region.
According to the Chief Secretary, the region’s tourism sector has also been a focal point for investment, particularly in Baltistan, which is seeing increasing numbers of tourists, primarily from the upper and middle classes. This influx has spurred growth, but challenges remain. “Climate change and tourism sustainability are major considerations for us,” said the Chief Secretary. The region has developed ten management plans to ensure that tourism growth aligns with environmental conservation, and feasibility studies are underway for ski resort projects, air safari initiatives, and a cable car service. However, the lack of coordination in the NFC formula has created significant barriers to completing these projects.
In addition to tourism, Gilgit-Baltistan is struggling with infrastructure limitations. The region’s airports, particularly in Skardu and Gilgit, are unable to handle the volume of tourists. Skardu’s airport, though larger, is still limited, with only ten flights arriving in the summer. Meanwhile, Gilgit faces even more difficulties, with fewer flight connections. A proposal for a new airport in Gilgit is currently under feasibility study, with hopes of improving connectivity for both tourists and local residents.
The committee discussed several major tourism-related projects that are currently in progress, including the renovation and preservation of the historic Red Fort in Muzaffarabad, the establishment of a Museum in Mirpur, and the creation of a Simulacrum of Junjaal Hill. Additionally, the Skardu Airport, upgraded to international status in December 2021, is now poised to welcome international flights, further boosting the region's accessibility to global tourists. The airport currently operates 16 weekly flights connecting key cities such as Islamabad, Lahore, and Karachi.
While the number of tourists in AJK and GB saw a slight decrease in 2023 (down by 3,990 visitors to a total of approximately 16,130), the committee remains optimistic that the ongoing infrastructure enhancements will significantly attract more visitors in the coming years.
On energy, Senator Zeeshan Khanzada pointed out that power remains one of the region's biggest challenges. While hydroelectric power holds promise, it requires significant investment and time, with water availability proving inconsistent. “We must look into solar projects as a solution, especially for remote areas where hydroelectricity is not feasible,” Khanzada suggested.
Further investments in connectivity were also highlighted, including the construction of the Gilgit-Shandur Expressway, a PKR 50 billion project, as well as key entry points to the region such as the Babusar Pass, Khunjerab Pass, and Bisham.
Senator Prof. Mir emphasized the significant incentives available for tourism investment in Gilgit-Baltistan, which is designated as a tax-free zone offering low royalties, affordable electricity, investor facilitation, and a Visa-on-Arrival policy for citizens of 65 countries.
The meeting also led to recommendations for improving the region’s representation in national policy forums. The committee called for observer representation for both Gilgit-Baltistan and Azad Kashmir in important constitutional discussions, acknowledging their unique needs and challenges.
The Additional Chief Secretary concluded the briefing by urging the finance department to consider a one-time grant of 30 to 35 billion rupees to address critical infrastructure needs, including energy and tourism projects. He emphasized that without such an injection of funds, many vital projects cannot be completed.
The Briefing related to Kashmir and its tourism and development projects were deferred for the next meeting
The meeting was attended by Senators Nadeem Ahmed Bhutto, Dost Muhammad Khan, Zeeshan Khanzada, and Hamid Khan, along with senior officials from the relevant government departments.