Banned JAAC’s Illegal Acts Caused Up to Rs15 Billion Economic Loss: AJK Govt

Ministers urge dialogue and restraint, saying strikes and road blockades have damaged tourism, trade and public services across Azad Kashmir.

June 25, 2026 at 1:24 PM
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MUZAFFARABAD: Azad Jammu and Kashmir (AJK) Finance Minister Chaudhry Qasim Majeed and Information Minister Rafiq Nayyar said on Thursday that illegal and unconstitutional acts by members of the banned Joint Awami Action Committee (JAAC), including prolonged strikes, road blockades and violent protests, had caused up to Rs15 billion economic damage to the region, while reaffirming the government’s commitment to dialogue and the protection of democratic rights.

Addressing a joint press conference on the prevailing situation in AJK, the ministers said the government fully respected the public’s right to peaceful protest and legitimate demands. However, they stressed that shutdowns of businesses, transport networks and commercial activities in the name of protest had adversely affected the region’s economy and the livelihoods of ordinary citizens.

According to preliminary estimates prepared by the Finance Department and other relevant institutions, AJK suffered an overall economic loss of between Rs10 billion and Rs15 billion during June 2026 as a result of strikes and protest activities. The ministers said the tourism, trade and transport sectors had been particularly affected, while internal revenue collection and tax receipts had also declined significantly.

They noted that uncertainty during the peak summer tourist season had caused losses worth billions of rupees to the tourism industry. Traders, labourers and thousands of daily wage earners had also been adversely affected by the disruption. The ministers emphasised that the losses were not those of the government alone, but of every citizen of Azad Kashmir.

The government, they said, had pursued all constitutional and democratic avenues to address public concerns, including negotiations, an All Parties Conference, parliamentary deliberations and judicial forums. However, they said that certain groups had continued to expand their demands and had adopted a path leading to confrontation and instability.

Reaffirming the state’s commitment to protecting citizens’ rights, the ministers said no individual or group would be allowed to take the law into their own hands, challenge the writ of the state, engage in violence or paralyse public life. They added that constitutional and legal measures would continue to ensure peace, stability and the rule of law.

The ministers also highlighted ongoing preparations for AJK’s forthcoming general elections, stating that public participation in the democratic process remained strong. They pointed to a notable increase in the number of nomination papers filed, describing it as evidence that citizens preferred democratic engagement over agitation and unrest.

Condemning attacks on state institutions, disorder in hospitals and incidents involving violence and gunfire against law enforcement personnel, they described such actions as unacceptable. Law enforcement agencies, they said, would continue to fulfil their responsibilities in safeguarding public life, property and state institutions.

The government remains open to dialogue and a peaceful resolution of disputes, the ministers said, but made clear that it would not yield to what they termed blackmail, violence or anti-state activities. They also appealed to the public to avoid rumours and inflammatory propaganda and to contribute towards maintaining peace, development and stability across the region.

Azad Kashmir government declares JAAC proscribed organization

The Azad Jammu and Kashmir government declared the Joint Awami Action Committee a proscribed organisation under anti-terrorism laws on June 5, saying the group was “engaged in terrorism, acting in a manner prejudicial to the peace and security of the State”.

Authorities argue that concerns regarding the committee’s intentions intensified after a series of statements and actions that they say went beyond peaceful political activism. Officials said that rhetoric directed against state institutions, calls for the withdrawal of security forces, disruption of educational activities and inflammatory narratives contributed to growing suspicions about the organisation’s real objectives.

Government officials further contend that support expressed by hostile foreign media outlets, anti-state social media accounts and Indian media platforms for the committee’s activities raised serious questions about the forces seeking to exploit unrest in the region. According to security analysts supporting the government’s position, these developments gradually exposed an organised effort to challenge state authority under the cover of a public rights movement.

The AJK government had also registered a case under Section 124-A of the Azad Jammu and Kashmir Penal Code (APC) against Khawaja Mehran Arshad, a key ringleader of the proscribed Jammu Kashmir Joint Awami Action Committee (JAAC), following a highly provocative speech targeting the country’s security architecture.

The First Information Report (FIR) was formally lodged at the Civil Secretariat Police Station in Muzaffarabad after intelligence and local monitoring units verified the contents of Arshad’s address, delivered on June 14, 2026, at Dreck, Rawalakot.

The state has vowed to take unyielding action against all facilitators of the network, reiterating that while peaceful negotiation remains open for civic groups, zero tolerance will be extended to entities attempting to orchestrate institutional anarchy.

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