Thus, Azad Kashmir remains for all intents and purposes under Pakistan's strict control, exercising no real sovereignty of its own. From the outset, the institutional set up in the territory was designed to ensure Pakistan's control of the area's affairs. According to the United Nations Commission for India and Pakistan (UNCIP) 39 resolutions, Azad Kashmir is neither a sovereign state nor a province of Pakistan, but rather a “local authority” with responsibility over the area assigned to it under the current 2003 ceasefire line agreement. 40 The “local authority” or Provisional government of Azad Kashmir as established in October 1947 handed over to Pakistan under the Karachi Agreement of 28 April 1949, matters related to defence, foreign affairs, negotiations with the UNCIP and coordination of all affairs relating to Gilgit and Baltistan (strategically important territories that now comprise Pakistan's “Northern Areas”).