Massive relief efforts were underway for earthquake victims as Prime Minister Shaukat Aziz announced Rs 1 billion for rescue operation and ordered dispatch of truckloads of goods to affected areas.
After a high-level meeting at the Prime Minister house late evening, he told reporters the trembler caused extensive damage in Azad Kashmir.
Muzaffarabad, Rawalakot's low-lying areas, Abbotabad, Manshera, Shari Habibullah and Batagram were the most severely hit areas where mainly mud houses were completely destroyed.
The Prime Minister described the situation as very serious and said a massive relief and rescue operation involving army, police and other civil agencies has been mounted in affected areas.
He announced Rs 1 billion for relief efforts and ordered an immediate dispatch of 10 truckloads of goods to Hazara division from where it would be air-lifted to areas not accessible through roads.
The government would welcome assistance from friends abroad, he added.
The Prime Minister said with the assistance of the army, the work was on to open road linking Murree to AJK that had been blocked by landsliding triggered by the earthquake.
The epicentre of the quake was located at about 95 kilometres north-east of Islamabad. Massive tremors lasted for at least two minutes, followed by several aftershocks shortly before and after around 0900 hours.
Strong aftershocks were also recorded in the evening.
The tremor, measuring 7.6 on the Richter scale, also destroyed a 10-storey building in Islamabad.
The Prime Minister Aziz, who along with President General Pervez Musharraf visited the site, said relief operation was underway to retrieve people from the rubble.
The Prime Minister said he has also talked to the governor and the chief minister of the NWFP and relief and rescue efforts were being carried out in affected areas. He appreciated quick response from the army, interior ministry and other civil agencies.
An emergency has been declared in hospitals and medical camps set up in Islamabad and in the quake-hit areas to ensure immediate aid to the injured. The Prime Minister also appealed to the people to contribute to the government's relief efforts.
A President Fund has been opened and a disaster relief cell established at the Prime Minister's house to help affected people.
The Prime Minister said the government would also announce compensation for the dead and provide financial assistance to help the reconstruction efforts.
The shocks also caused several landslides around the far northern towns of Skardu, Kohistan and Chitral forcing the closure of several important roads.
Sections of the famous Karakorum highway - the old Silk Road that links Pakistan with China - were also blocked due to landslides and avalanches in snowy passes, reports from Skardu said.