Sahitya Akademi awards were announced in New Delhi.
Mushtaq was given this year's award for his collection of short stories titled 'Aakh'.
'Aakh' is a collection of 18 short stories that were chosen from the 13 books in the Kashmiri language.
The writer is presently posted as head of the regional news unit at Radio Kashmir Srinagar.
He has served in Doordarshan news unit at Srinagar Kendra for nine years apart from having worked in other media units of the Ministry of Information and Broadcasting as an Indian Information Service (IIS) officer.
(With inputs from agencies.)