Seven people were killed and dozens wounded in clashes between police and members of a banned activist group in Pakistan-administered Kashmir, officials said on Monday.

Supporters of the Joint Awami Action Committee (JAAC), an anti-government movement demanding economic and governance reforms, had vowed to press ahead with protests days after the local government banned the group under anti-terrorism laws.

Commissioner Sardar Waheed, the top civilian official in the city of Rawalakot, where the latest clashes took place, told AFP three civilians were killed and 40 wounded.

Police confirmed in a statement that the incident left four officers dead and 23 wounded.

Police said that the JAAC's central office was sealed on Sunday and a ban on large gatherings imposed in Muzaffarabad, the largest city in Pakistan-administered Kashmir.

Markets were open in Muzaffarabad while law enforcement agencies were patrolling the city on Monday after residents had rushed over the weekend to shops to stock up ahead of expected protests and lockdowns, according to an AFP journalist.

Members of the JAAC have called their listing as a "terror" group "oppression", saying they are demonstrating for legitimate economic and political rights.

Authorities confirmed more than 70 JAAC members had been arrested over the weekend.

Days of violent clashes between police and protesters led by the JAAC last gripped the Himalayan region in September, with nine confirmed killed.

Muslim-majority Kashmir is claimed in full by both India and Pakistan but has been divided between them since their independence from British rule.