Muzaffarabad: The Azad Jammu and Kashmir government has resumed issuing mining leases after a nearly two-year suspension, a move officials say could restart mineral exploration, attract fresh investment and bring long-stalled projects back onto the table.
According to an official statement reported on Monday, the issuance of mining leases had been suspended since March 2024. The matter was later taken up at the Special Investment Facilitation Council (SIFC) forum in July 2025, where policy-level facilitation helped clear the way for AJK to reopen the sector.
The decision is being seen as a significant shift for AJK’s mineral economy, which had remained largely stuck due to restrictions on new mining leases, mining permits, exploration permits and extensions of existing approvals. Earlier, the AJK government had revoked a March 22, 2024 notification that imposed the ban, with the reversal linked to decisions taken by the AJK cabinet on January 28, 2026.
Officials believe the reopening will help unlock investment in mineral exploration and extraction, especially in areas where commercial activity had slowed because companies could not secure fresh approvals or renew old ones. The government expects the decision to support economic growth in the region and create new employment opportunities for local communities.
The earlier suspension had not been limited to mining alone. It also covered the leasing of state land, including Khalisa Sarkar land, and the extension of already leased state land across AJK without prior government approval. It affected both high-value and ordinary minerals, leaving investors, contractors and local stakeholders waiting for a clearer policy direction.
Now, with the restrictions lifted, the AJK administration appears to be pushing for a more investment-friendly framework. The SIFC’s involvement also signals Islamabad’s wider focus on mineral-sector development, an area the federal government has repeatedly described as important for exports, industrial growth and foreign investment.
Still, the real test will be implementation. Mining in mountainous regions like AJK often raises questions about environmental safeguards, transparent lease awards, local employment rights and revenue sharing. Investors may welcome the reopening, but communities will likely judge the policy by what it delivers on the ground — jobs, infrastructure and protection from reckless extraction.
For now, the message from the government is clear: AJK’s mining sector is open again. After almost two years of uncertainty, companies can once more seek leases and permits, while the authorities hope the move will turn mineral wealth into economic activity rather than paperwork gathering dust.
