The geological environment of AJK is comprised of three types of rocks, i.e. sedimentary, igneous and metamorphic. The type of mineral deposits found are; industrial Minerals, gemstones, precious metals and base metals. The Industrial minerals and base metals are found in all the three rock types and thus spread in the whole of the AJK territory, whereas gemstones are confined to metamorphic terrain and occur in the upper parts of Neelum Valley. The most economically promising mineral resources of Azad Kashmir are Gemstones and Industrial minerals. .
In AJK mineral exploration activities started in 1973 by a State Owned Corporation (AKMIDC). Initially the emphasis was laid on assessment of potential of economic mineral deposits, having high unit value and import substitute. With the assistance of donor agencies like UNDP the Corporation succeeded in discovering various and assessing following mineral deposits.
Infrastructure; a pre-requisite for the development of Tourism comprises wide ranging and diverse activities which requires heavy investment. The Govt. of AJ&K has developed basic infrastructure envisaging a good road net- work, electricity, building a large number of rest houses in the scenic areas and provided telecommunication network.