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She was re-elected following a meeting of the PDP political affairs committee (PAC) here earlier in the day.
A party spokesman said Mehbooba's re-election was unanimous.
The party was founded by late Mufti Muhammad Sayeed, Mehbooba's father, in 1999.
When Sayeed became the Chief Minister in November 2002, he handed over the party's mantle to his daughter, who was named President in 2003.