The Authority started in 2005 as a cell, which consisted of officers / staff from different departments of Government of Azad Kashmir. Most of the staff was seconded to the cell. However, with the introduction / start of Trade in 2008 the cell was given a new shape of Authority as an independent, sovereign body, with its own law for smooth functioning. Since then it has developed / progressed and grown as Travel and Trade Authority.

As per the MOU signed between Governments of Pakistan and India, only the Travel of Passengers started. First bus with 30 passengers crossed the LoC to IHK and 30 passengers came to AJK. The Travel was allowed fortnightly / once in a month. At the same time there was matching organization / establishment to control / manage and process this activity. Under the instructions and guidance of Government of AJK, the Administration (DC / AC) took up this challenge. At the same time, there were no funds available to manage the activity. Government of Pakistan (Ministry of Gilgit Baltistan and Kashmir Affairs) allotted Rs. 150 million for establishment of terminals / provision of buses and other administrative needs as one time measure. It was this financial support, which provided initiative to organize and develop this cell into an efficient working body. However, since then the cell / authority became self sustained and progressed leap and frog. At present, the Authority is self sustained and undertakes development projects / manages routine expenditures and pay of staff from within its own funds.