The decision was made during a meeting presided over by PPP AJK President Chaudhry Muhammad Yasin.

According to party leaders, continued alliance with Prime Minister Anwarul Haq’s government is “no longer possible”.

Sources within the party said the PPP’s central leadership in Azad Kashmir believed it remains the region’s largest parliamentary force and will now make a concerted effort to form its own government.

The meeting also decided to convene a special session in Karachi today (Thursday) to finalise the party’s future strategy.

The meeting will be presided over by PPP Chairman Bilawal Bhutto Zardari himself.

Party insiders said the Karachi session will determine whether the PPP will stay in the government or take up the role of opposition.

If efforts to form a new government succeed, Chaudhry Yasin is likely to be the party’s candidate for prime minister.

Meanwhile, political temperatures appear to be cooling at the federal level.

Following a war of words between the Pakistan Muslim League-Nawaz (PML-N) and the PPP, both parties have now agreed to a “ceasefire”.

Leadership from both sides has instructed their members to avoid public statements against each other.

According to sources, a PML-N delegation comprising senior party leaders held an important meeting with President Asif Ali Zardari in Nawabshah to discuss national political developments.

It was decided during the meeting that all differences would be resolved through dialogue and understanding.

The delegation conveyed a special message from Prime Minister Shehbaz Sharif to President Zardari.

Political analysts say the PPP’s withdrawal from the AJK government, coupled with signs of reconciliation at the federal level, indicates that Pakistan’s political landscape is entering a new phase — one where old alliances are dissolving, and new alignments are beginning to take shape.