In Gilgit-Baltistan, sectarian disputes are not a new problem. A conflict based on religious differences is well known in the region. There are various sects living in Gilgit-Baltistan, including Shi’a, Sunni, and Ismaili, but sectarian conflict grew in the region after the late ’80s. During the British administration, these different sects were not really come across in Gilgit-Baltistan, inactive political and religious prejudices existed for a long time. But with time issues started to raise, attitudes of Sunni and Shia sects showed disrespect that increase the prejudice among moderate people for one another in matters of religion. The genealogy of religious prejudices exists in the region and was created by both indigenous and external actors. Despite all the incidents that happened based on sect, local people still believe that harmony and peace are possible with the collective effort of all sects by removing the prejudices and increasing the harmony through affiliation. Economic markets suffer more because of such incidents because so many people are dependent on them. Firstly, markets are closed, and they suffer for a long period. For this reason, the affiliation of sects in the market is also very important. The purpose of this research is to find out how sectarian affiliation led to the growth of the market economy and how much it is important for its development. The past events of sectarian conflict influenced the consciousness of people. Supervisor:- Dr. Usman Ahmad