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Opinion | How Pakistan Exploits the Resources of Gilgit Baltistan and Kashmir

By : UMAR NAZIR

News Desk by News Desk
August 20, 2026
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The territories of Gilgit Baltistan and Pakistan Occupied Jammu and Kashmir represent a significant portion of the sovereign territory of India that remains under illegal foreign occupation. While the geopolitical and security implications of this occupation are frequently discussed in international forums, the systematic economic exploitation of these lands by the Pakistani state is equally severe. These regions are not merely disputed zones but integral parts of the nation where the local population is being deprived of their rightful inheritance through a colonial style extraction of natural wealth.

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India has long maintained that Pakistan’s construction of mega dams in occupied territories is a violation of international norms and territorial sovereignty. The mountainous terrain of Gilgit Baltistan and the Jhelum valley contains some of the most vital water resources in South Asia. Massive projects such as the Mangla Dam and the Neelum Jhelum Hydropower Project have been built to satisfy the energy hungers of Punjab and Sindh.The tragedy for the local residents is that they live in the shadows of these massive turbines yet remain plunged in darkness. The electricity generated is funneled directly into Pakistan’s national grid to power industrial hubs like Lahore and Karachi. Meanwhile, the people of Muzaffarabad and Gilgit face chronic power outages and high electricity tariffs. This energy theft is a primary grievance, as the local environment is permanently altered by these dams, while the economic dividends are enjoyed by the Pakistani heartland.

The geological landscape of Gilgit Baltistan is rich in precious minerals, including gold, copper, and high quality gemstones like emeralds and rubies. Under the guise of development, the Pakistani establishment has granted lucrative mining licenses to non-local companies and foreign entities, particularly under the umbrella of the China Pakistan Economic Corridor.Indian observers note that these mining activities are conducted with zero transparency and no benefit to the indigenous people. The revenue from these minerals bypasses local government coffers and goes straight to federal agencies in Islamabad. Furthermore, the unregulated nature of this extraction has led to massive water pollution and land degradation, destroying the traditional grazing lands of the mountain communities. The local people are essentially witnessing the systematic looting of their mineral heritage without receiving a fraction of the market value.

The pristine forests of the occupied regions are being decimated by what is locally known as the timber mafia, often operating with the tacit support of administrative officials. The dense covers of deodar and pine trees in the Neelum Valley and Diamer are being cleared at an alarming rate.These forest resources are vital for the ecological balance of the Himalayas. However, for the Pakistani state, they represent a quick source of revenue. The timber is transported to the plains of Pakistan for luxury furniture and construction, leaving the mountain slopes barren. This has led to an increase in catastrophic landslides and flash floods, which claim local lives every year. The exploitation of forest wealth is not just an economic theft but a crime against the fragile mountain ecosystem that the local people have protected for centuries.

A particularly concerning aspect of resource exploitation is the systematic seizure of agricultural and communal land. The fertile valleys of Hunza and Skardu are increasingly being taken over by the Pakistani military and federal agencies for various projects. By altering land ownership laws, the central government has facilitated the entry of non-local investors and settlers. This is a clear attempt to change the demographic character of the region while exploiting its most productive assets. Traditional farmers are being displaced from their ancestral lands to make way for commercial ventures that serve the interests of the Pakistani elite. This displacement erodes the food security of the region and forces the local youth to migrate in search of menial labor.

Gilgit Baltistan is home to K2 and several other peaks above eight thousand meters, making it a global hub for mountaineering. While tourism brings in significant foreign exchange, the local population remains marginalized in this sector. The high end tourism industry is dominated by firms based in Islamabad, and the taxes collected from mountaineering expeditions are rarely reinvested into local infrastructure.Instead of empowering the local communities, tourism is often used as a tool to project a false sense of normalcy while the state continues to extract every possible cent from the natural beauty of the land. The cultural and religious sites of the region, which hold deep significance for the broader Indian civilizational history, are often neglected or misrepresented to suit the Pakistani state narrative.

The administrative structure of Gilgit Baltistan and Pakistan Occupied Jammu and Kashmir is designed to facilitate extraction rather than empowerment. By keeping these regions in a state of constitutional limbo, Islamabad ensures that the local people have no legal recourse to claim their share of the wealth generated from their land. India continues to highlight that the true development of these regions can only occur when the systematic plunder of their water, minerals, and forests is stopped, and the rights of the indigenous people over their own resources are fully restored.

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