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Azad Jammu and Kashmir (AJK) or, for short, Azad Kashmir(literally, "free Kashmir") is the southernmost political entity within the Pakistani-controlled part of the former princely state of Jammu and Kashmir. It borders the present-day Indian-administered state ofJammu and Kashmir to the east (separated from it by the Line of Control), the North-West Frontier Province of Pakistan to the west, the Federally Administered Northern Areas (FANA) to the north, and the Punjab Province of Pakistan to the south. With its capital atMuzaffarabad, Azad Kashmir covers an area of 13,297 km² (5,134 mi²) and has an estimated population of about four million.

Azad Kashmir's financial matters, i.e., budget and tax affairs, are dealt with by the Azad Jammu and Kashmir Council, rather than by Pakistan's Central Board of Revenue. The Azad Jammu and Kashmir Council is a supreme body consisting of 11 members, six from the government of Azad Jammu and Kashmir and five from the government of Pakistan. Its chairman/chief executive is the president of Pakistan. Other members of the council are the president and the prime minister of Azad Kashmir and a few other AJK ministers.