Prime Minister Shehbaz has called a meeting on the situation in AJK on Monday, sources said on Sunday.
The AJK premier and all stakeholders concerned will attend the meeting, the insiders added.
The sources said the minister for Kashmir affairs, energy and food security will also be the participants in the meeting.
The premier will be briefed on the situation and important decisions are expected, they maintained.
Protests in AJK against power tariff hikes, flour prices and elite privileges have continued for the past three days.
The clashes between the police and protesters the previous two days left one policeman dead and several people injured, reports said.
More than 150 protesters were detained, according to sources. Rangers were called in on Sunday but sent back after the AJK government opted for negotiations on the third day of protests.
The sources added that the deadlock between the AJK government and demonstrators persisted over power tariffs until this report's filing.
President Asif Ali Zardari and Prime Minister Shehbaz stressed the need to show restraint and resolve the issue through talks.
Taking to X, he stressed the need for dialogue to resolve the issue.
He said he is “deeply concerned about the situation in AJK.” He added: “Unfortunately in situations of chaos and dissent there are always some who rush in to score political points.
“While debate, discussion and peaceful protests are the beauties of democracy, there should be absolutely no tolerance for taking the law in one's own hands and damaging government properties.
“I have spoken to PM AJK and also directed all PML-N office bearers in AJK to talk to the leaders of the action committee and I urge all parties to resort to a peaceful course of action for the resolution of their demands. Despite best efforts of detractors, the matter will hopefully be settled soon.”