The decision was taken at a meeting presided over by President General Pervez Musharraf and also attended by Prime Minister Shaukat Aziz.
Major General Muhammad Farooq, Chairman Prime Minister's Inspection Commission, will head the Commission. The Commission will streamline relief operation in collaboration with the provincial government, relevant ministries, non-governmental organisations (NGOs), Red Crescent and international agencies.
Briefing the media about the decisions taken at the meeting, Presidential Spokesman Major General Shaukat Sultan said, "The purpose of the Commission is to co-ordinate and synergies the help and effort that is coming from NGOs, philanthropists and aid coming from foreign countries and international agencies."
The President appealed to the nation and the media to remain calm and show patience in the face of the catastrophe.
He observed that rapid response of the government has rescued thousands of people trapped in difficult locations while it is also striving to recover the victims trapped under the rubble.
"All national resources, including civilian and military, have been mobilised for early recovery, relief and rehabilitation of the quake-hit people, Musharraf said.
Shaukat Sultan said that the international community has responded actively to the President 's call for assistance and relief consignments are coming in.
Meanwhile, the meeting was informed that round-the-clock work by civilian and army engineers have made it possible within 36-48 hours to reopen blocked routes to the affected areas, including Abbottabad-Muzaffarabad, Rawalpindi-Bagh and Rawalpindi-Balakot roads.
The road connecting Murree with Muzaffarabad is expected to open later on Monday evening.
Prompt provisions including tents, blankets, food items for individuals and families are being dispatched in fast pace to the affected areas, the meeting was told.
The meeting decided that medical teams should include surgeons, specialists and lady doctors from both civil and military hospitals for on-the-spot surgery and treatment in specially set up hospitals in the disaster-stricken areas.
The President and Prime Minister appealed to the nation to offer special prayers on coming Friday for the country's safety and speedy recovery and rehabilitation of those affected.
They also asked the people to pray for the departed souls and courage and fortitude to the bereaved families.