Prime Minister Shehbaz Sharif approved on Monday the provision of Rs23 billion for Azad Jammu and Kashmir (AJK) amid violent protests in the region.

Violent clashes between the police and activists rocked AJK as the people took to the streets against an increase in electricity tariff. At least one police official died and dozens were injured on Saturday. A complete strike has also been observed in the territory since Friday, bringing routine life to a halt.

The approval was given at a special meeting chaired by the prime minister in Islamabad.

The high-level meeting was attended by Prime Minister of AJK Chaudhry Anwarul Haq along with political leaders and ministers of coalition parties.

Reduction in electricity prices

AJK Prime Minister Chaudhry Anwarul Haq announced a reduction in electricity tariff soon after the meeting chaired by the premier concluded. 

“The residents in AJK have been advocating for affordable electricity and flour subsidies for the past few days. No one can ignore the necessity of accessible electricity and affordable bread," said Anwar. He also announced a reduction in bread prices.

According to a notification issued by the AJK energy department, household consumers using one to 100 units, will pay Rs3 per unit. Those using 101 to 300 units, the new cost will be Rs5 per unit and for those consuming more than 300 units, the new rate will be Rs6 per unit.

The rates for commercial consumers were also decreased according to the notification. 

In view of the gravity of the situation, President Asif Ali Zardari on Sunday urged all stakeholders to exercise restraint and resolve the issues through dialogue and mutual consultation.

“The political parties, state institutions, and the people of AJK should act responsibly so that hostile elements cannot exploit the situation to their benefit,” Zardari said while addressing a delegation of PPP lawmakers in the AJK Legislative Assembly according to an official statement.

Expressing his sorrow over the death of the policeman, the president emphasized that the demands of the people of AJK should be addressed according to the law.

Prime Minister Shehbaz Sharif also expressed deep concern over the ongoing situation in AJK on Sunday, urging all parties to adopt a peaceful course of action to resolve their demands.

In December 2023, the Azad Kashmir Joint Awami Action Committee (JAAC) came to an agreement with an official reconciliation committee, followed by a government notification issued on February 4.

However, in April, the committee declared its intention to organize a long march on May 11, protesting the government's “failure” to fulfill its written commitments.

JAAC, which has traders at the forefront in most parts of the state, has been seeking the provision of electricity as per hydropower generation cost in the AJK, subsidized wheat flour, and an end to the privileges of the elite class.

Last week, several JAAC members were arrested by police in Muzaffarabad and Mirpur divisions. The committee announced a strike on Friday as the AJK police blocked the arteries leading to Muzaffarabad and resorted to baton-charge and teargas shelling to disperse the protesters on Saturday.