Economy of Muzaffarabad

There are mineral and marble resources in Azad Kashmir close to Mirpur and Muzaffarabad. There are also graphite deposits at Mohriwali. There are also reservoirs of low-grade coal, chalk, bauxite, and zircon. Local household industries produce carved wooden objects, textiles, and dhurrie carpets. There is also an arts and crafts industry that produces such cultural goods as namdas, shawls, pashmina, pherans, Papier-mâché, basketry copper, rugs, wood carving, silk and woolen clothing, patto, carpets, namda gubba, and silverware. Agricultural goods produced in the region include mushrooms, honey, walnuts, apples, cherries, medicinal herbs and plants, resin, deodar, kail, chir, fir, maple, and ash timber.

In addition to agriculture, textiles, and arts and crafts, remittances have played a major role in the economy of Azad Kashmir. One analyst estimated that the figure for Azad Kashmir was 25.1% in 2001. With regard to annual household income, people living in the higher areas are more dependent on remittances than are those living in the lower areas.

In the latter part of 2006, billions of dollars for development were mooted by international aid agencies for the reconstruction and rehabilitation of earthquake-hit zones in Azad Kashmir, though much of that amount was subsequently lost in bureaucratic channels, leading to considerable delays in help getting to the most needy. Hundreds of people continued to live in tents long after the earthquake. A land-use plan for the city of Muzaffarabad was prepared by the Japan International Cooperation Agency.

Remittances by British Pakistanis form an important part of the Kashmiri economy