Opinion | How Pakistan Benefits from POJK

Until such changes take place, many observers believe the perception will remain that POJK functions primarily as an economic asset for Pakistan rather than a region whose people share fully in the value of their natural resources.

Pakistan-Occupied Jammu and Kashmir (POJK) is often presented by Islamabad as a territory enjoying autonomy and development. Official narratives frequently portray it as a region progressing under Pakistan’s administration. But the lived reality for many people there paints a very different picture. Over the decades, POJK has increasingly functioned less like a self-governing region and more like a strategic and economic extension of Pakistan. Its rivers, forests, and mountains continue to supply valuable resources, yet the people living there rarely see the full benefit of that wealth. In many ways, POJK has come to resemble a resource reservoir, one that sustains others while remaining underdeveloped itself. Perhaps the clearest example of this imbalance lies in the way hydropower resources are used. The rugged landscape of POJK is blessed with powerful rivers, especially the Jhelum and Neelum. These rivers have enormous potential for hydroelectric generation, and Pakistan has tapped into that potential through major projects, including the Neelum–Jhelum Hydropower Project. The project produces hundreds of megawatts of electricity, most of which feeds Pakistan’s national grid and powers cities and industries far away from the valleys where that energy originates.

Yet the irony is hard to ignore. Communities living near these massive power installations often face frequent electricity outages themselves. In villages not far from the dams, residents still endure long stretches without reliable power. Electricity generated from their own rivers lights up distant urban centres, while many local households struggle with an inconsistent supply. This disconnect highlights a broader pattern: resources extracted from the region rarely translate into real improvements in local infrastructure or quality of life. The same story can be seen in the extraction of natural resources. POJK’s forests and mountains contain valuable timber and other natural assets that have long been harvested to support industries elsewhere in Pakistan. Timber from these forests has fed construction markets for years. Yet the communities living among these forests rarely receive fair compensation or meaningful investment in return. At the same time, environmental concerns are growing as large-scale extraction continues without sufficient focus on sustainability or conservation.

Despite the wealth generated from these resources, infrastructure within the region still struggles to keep pace. While officials in Islamabad often highlight development announcements and large projects, many districts in POJK continue to face basic shortcomings. Roads connecting remote areas remain in poor condition, healthcare facilities are limited, and many schools operate without adequate resources. For ordinary residents, daily life often involves navigating economic hardship despite living in a resource-rich region. Governance structures add another layer to the problem. On paper, POJK has its own legislative assembly and administrative setup. In practice, however, many key decisions are heavily influenced or effectively controlled by authorities in Islamabad. Strategic areas such as water management, security matters, and major infrastructure projects remain under federal oversight. This leaves local leaders with limited space to shape policies that directly affect their communities.

Over time, this arrangement has contributed to a sense of political marginalization among sections of the population. While the region frequently appears in political speeches and international discussions, local voices often struggle to influence decisions about how resources are managed or how development priorities are set. Policies affecting land, water, and economic planning are often decided outside the region itself. Economic opportunities for residents also remain limited. Even with large infrastructure projects operating nearby and significant natural resources in the region, job creation has not matched expectations. Many young people and skilled workers leave in search of employment elsewhere in Pakistan or abroad. For those growing up in POJK, finding stable opportunities close to home can be difficult. Tourism presents another missed opportunity. The region’s landscape is undeniably beautiful ,lush valleys, snow-covered peaks, and fast-flowing rivers make it naturally attractive to visitors. With proper planning and investment, tourism could become a powerful driver of local employment and entrepreneurship. Small businesses, hospitality services, and community tourism initiatives could flourish. Yet the sector has not received the consistent support or infrastructure investment needed to unlock its potential.

The contrast between natural wealth and local hardship becomes especially visible in the energy sector. While hydroelectric projects produce large quantities of electricity for the national grid, nearby villages sometimes rely on generators or other temporary solutions because their own supply remains unreliable. For many residents, this situation symbolizes the broader inequality embedded in the current development approach.

Observers and critics often draw parallels between this pattern and historical models of resource extraction seen in colonial economies. In such systems, natural wealth flows outward while the communities closest to those resources remain underdeveloped. In POJK, rivers generate power, forests provide timber, and land hosts infrastructure projects, yet the benefits rarely return in proportion to the wealth being extracted. The long-term consequences of such an approach can be serious. Economic inequality can deepen frustration among local populations, environmental damage can threaten fragile ecosystems, and insufficient investment in education and healthcare can limit the region’s future potential. Without structural changes, the cycle of extraction without meaningful local benefit is likely to continue.

A more balanced approach would require development policies that place local communities at the centre. Greater transparency in how revenues from natural resources are distributed would be a start. Increased investment in schools, hospitals, roads, and local businesses could help ensure that the wealth generated from the region actually improves living standards there. Equally important is giving local institutions greater authority in decisions that affect their land and resources.

Until such changes take place, many observers believe the perception will remain that POJK functions primarily as an economic asset for Pakistan rather than a region whose people share fully in the value of their natural resources. The rivers will continue to produce electricity, the forests will continue to supply timber, and new projects will likely continue to emerge. But unless development becomes more inclusive and locally grounded, the people living there may continue to watch their resources fuel prosperity elsewhere while their own communities struggle to move forward. In that sense, describing POJK as Pakistan’s “milking cow” may sound harsh, but it reflects a widely discussed reality. It is a land rich in natural wealth and potential yet still waiting for that wealth to translate into genuine progress for the people who call it home.

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