Theeconomy of Kashmir is largely a developing one. Theper capita income andprovincial GDP estimates ofAzad Kashmir are comparatively underrated when compared with development in other regions of the country, although Azad Kashmir notably has a literacy rate that is substantially above the national average.^[1] Azad Kashmir's economy is heavily dependent onagriculture, but also relies onremittances sent each year by the members of the largeKashmiri diaspora. The Kashmiri diaspora in the United Kingdom have contributed greatly to the development of Azad Kashmir through their in-flow of remittances.^[2] In the southern districts, many men have been recruited into thePakistani Armed Forces. Other locals travel to countries in Europe or the Middle East where they work in labour-oriented jobs. The local tourism industry has potential although it is underdeveloped.^[1]

Challenges faced by Azad Kashmir's economy include the devastating2005 Kashmir earthquake, the effects of which the region is still recovering from.^[1]

As of 2022, the GDP of Azad Jammu and Kashmir was estimated to beUS$6.6 billion, giving per capita income of 1512 dollar USD,^[3] above from Sept 2013, when Azad Kashmir's GDP was estimated at $3.2 Billion.^[4]

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