Background
Following the first Kashmir war, the control of the territory now comprising Gilgit-Baltistan was transferred to the federal government in 1949 by the provisional government of Azad Kashmir set up by Pakistan. According to Pakistani analyst Ershad Mahmud, there were two reasons why administration was transferred: the region was inaccessible from Azad Kashmir, and because both the governments of Azad Kashmir and Pakistan were aware that the people of the region were in favour of joining Pakistan in a potential referendum over Kashmir's final status. The Indian journalist Paul Sahni sees this as an effort by Pakistan to legitimise its rule over Gilgit-Baltistan.
In August 1972, the Gilgit Agency, Baltistan — which, alongside Indian-administered Ladakh was formerly of the Ladakh Wazarat — and the hill states of Hunza and Nagar were amalgamated to form the Federally Administered Northern Areas, or Northern Areas for short. The territory was renamed Gilgit-Baltistan and granted self-government in 2009.
According to the International Crisis Group, the Karachi Agreement remains highly unpopular in Gilgit-Baltistan as Gilgit-Baltistan was not a party to it, even while it was its own fate was being decided. Following it and until 1970s, the Northern Areas were regulated by the Frontier Crimes Regulations; set up in colonial period, they treated tribal people harshly, levying collective fines and punishments. People had no right to legal representation or appeal. Members of tribes had to obtain prior permission from the police to travel anywhere, and had to keep the police informed about their movements. The people of Gilgit-Baltistan were deprived of rights enjoyed by citizens of Pakistan and Azad Kashmir. A position of 'Deputy Chief Executive' was created to act as the local administrator, but the real powers still rested with the 'Chief Executive', who was the Federal Minister of KANA. "The secretaries were more powerful than the concerned advisors," in the words of one commentator. In spite of various reforms packages over the years, the situation is essentially unchanged. Meanwhile, public rage in Gilgit-Baltistan "[grew] alarmingly." Prominent "antagonist groups" have mushroomed protesting the absence of civic rights and democracy. The Pakistani government has debated granting provincial status to Gilgit-Baltistan.
A primary reason for this state of affairs was the remoteness of Gilgit-Baltistan. Another factor was that the whole of Pakistan itself was deficient in democratic norms and principles, therefore the federal government did not prioritise democratic development in the region. There was also a lack of public pressure as an active civil society was absent in the region, with young educated residents usually opting to live in Pakistan's urban centers instead of staying in the region. The Government of Pakistan abolished State Subject Rule in Gilgit-Baltistan in 1974, which had prevented people from outside Gilgit Baltistan to buy land in the territory. In 1993, an attempt was made by the High Court of Azad Jammu and Kashmir to annex Gilgit-Baltistan but was quashed by the Supreme Court of Pakistan after protests by the locals of Gilgit-Baltistan, who feared domination by the Kashmiris. In 1994, a Legal Framework Order (LFO) was created by the KANA Ministry to serve as the de facto constitution for the region.
In the late 1990s, the President of Al-Jihad Trust filed a petition in the Supreme Court of Pakistan to determine the legal status of Gilgit-Baltistan. In its judgement of 28 May 1999, the Court directed the Government of Pakistan to ensure the provision of equal rights to the people of Gilgit-Baltistan, and gave it six months to do so. Following the Supreme Court decision, the government took several steps to devolve power to the local level. However, in several policy circles, the point was raised that the Pakistani government was helpless to comply with the court verdict because of the strong political and sectarian divisions in Gilgit-Baltistan and also because of the territory's historical connection with the still disputed Kashmir region, and that this prevented the determination of Gilgit-Baltistan's real status.
Gilgit-Baltistan has been a member state of the Unrepresented Nations and Peoples Organization since 2008. According to Antia Mato Bouzas, the PPP-led Pakistani government has attempted a compromise through its 2009 reforms between its traditional stand on the Kashmir dispute and the demands of locals, most of whom may have pro-Pakistan sentiments. While the 2009 reforms have added to the self-identification of the region, they have not resolved the constitutional status of the region within Pakistan.
As relayed by 2010 news reports, the people of Gilgit-Baltistan desire representation as a separate province within Pakistan. In July 2015, the then Prime Minister of Azad Jammu & Kashmir (AJK), Chaudhry Abdul Majid, opposed the move, preferring instead integration within a Kashmir province. Many of the people of Gilgit-Baltistan have, however, expressed desires for Pakistani citizenship and a constitutional status for their region as distinct from Kashmir.
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