Given the disputed nature of Gilgit-Baltistan for last 6 decades, there seems to be a mounting concern of local people about the constitutional and political orphanage; but there is an absence of common political struggle from the people of the region. This paper seeks to analyze the contemporary debate surrounding the constitutional status of Gilgit-Baltistan. It tries to understand the role played by ethnic diversity in the collective actions in the region. The division of populace along ethnic lines in Gilgit-Baltistan has often been a stumbling block which has prevented the people from initiating an organized and common political struggle for a peaceful solution of its constitutional status. It argues that the sociological fragmentation of populace along ethnic lines in Gilgit-Baltistan is the underlying cause which has prevented an organized collective action and thus the region has remained politically inactive and its constitutional identity lingers on. The paper has also assessed the impacts of ethnic diversity on the collective performance of public sector whose output has dwindled in the wake of growing ethnic discord.