Debt trap engulfs Kashmir's transporters, thousands unable to repay loans
Srinagar, May 18: Kashmir's transport sector has plunged into an unprecedented crisis following the Pahalgam terror attack on tourists, with thousands of commercial vehicle operators now struggling for basic survival amid mounting debts and diminishing earnings.
"After the Pahalgam attack when tourism declined to zero, transporters are now facing problems as they are not even able to feed their families, leave aside paying EMIs on borrowed money," said Sheikh Mohammad Yousuf, General Secretary of the Jammu and Kashmir Transporters Welfare Union.
According to the Union, approximately 28,000 commercial vehicles in Kashmir were dealing exclusively with the tourism trade, a sector that has virtually collapsed following the security incident. The ripple effects have spread throughout the entire transport ecosystem.
"We have around 70,000 commercial vehicles operating in Kashmir, of which the majority are hit," Yousuf explained, highlighting the scale of the crisis affecting drivers, vehicle owners, and their dependents.
The situation has created a perfect storm of financial distress for transporters who invested heavily in new vehicles based on previously booming tourism prospects. Many purchased expensive vehicles through bank loans that they are now unable to repay, creating both financial and social hardships.
Bashir Ahmad, who owns two tourist taxis in Srinagar, described his predicament with visible emotion. "I took loans for both vehicles last year when tourism was at its peak. The monthly installment is ₹38,000 for each taxi. Since the Pahalgam incident, my vehicles have been parked at home. I haven't earned enough to even pay for fuel, let alone the loan installments."
The crisis extends beyond simple financial difficulties. Transporters report facing social stigma due to their inability to meet financial obligations, with many now viewed as defaulters in their communities.
"We are now treated as if we deliberately refused to pay our loans," said Ghulam Mohammad, a minibus owner from Baramulla. "Nobody understands that this situation was completely beyond our control. The banks send recovery notices, and neighbors start looking at you differently. It's humiliating for families who have always maintained their dignity."
The transporters' plight is particularly devastating because many come from economically vulnerable backgrounds. "We belong to the lower social strata of society whose earnings are limited to hand to mouth, and due to the prevailing situation, it has become very difficult for us to feed our families," Yousuf emphasised.
The escalating tensions between India and Pakistan following the Pahalgam incident have further complicated recovery prospects, with security concerns continuing to deter tourists from visiting the region.
Farooq Ahmad, who operates a fleet of tempo travelers, described the dramatic change in circumstances. "Before the incident, we couldn't keep up with demand. Tourists were everywhere, and we were operating at full capacity. Now our vehicles are gathering dust, and drivers have been forced to look for alternative employment, but there aren't many options."
The crisis has created a cascade of economic problems, with many transporters unable to maintain their vehicles properly due to financial constraints. This raises concerns about safety and regulatory compliance when operations eventually resume.
"Many transporters are skipping necessary maintenance because they simply can't afford it," said Javaid Ahmad, another union member. "This could create safety issues later, but what choice do they have when they're struggling to put food on the table?"
The transporters' union has appealed to Chief Minister Omar Abdullah and Lieutenant Governor Manoj Sinha to intervene urgently. Their demands include an extended moratorium period for loan repayments and direct financial assistance to affected drivers and vehicle owners.
"We desperately need the government to step in," Yousuf pleaded. "Transporters purchased new eco-friendly vehicles after keeping in view the huge tourist rush, taking loans from J&K Bank and other financial institutions. Now, through no fault of our own, we're facing ruin."
Bilal Ahmed, who drove tourists around the Valley in his new car purchased on loan, expressed the desperation many are feeling. "I've started selling household items to feed my children. If this continues, I'll have no choice but to surrender my vehicle to the bank, but then how will I earn when the situation improves? We need immediate government intervention."
The transporters argue that their crisis affects not just their immediate families but has broader economic implications for the region, as the transport sector connects various economic activities.
"When we suffer, it affects everyone," noted Abdul Rashid, who owns two buses that formerly transported tourists to popular destinations across Kashmir. "From mechanics to spare parts dealers to the small tea shops where drivers would stop—the entire economic chain is disrupted."
As Kashmir's harsh winter approaches, the transporters fear conditions could worsen without immediate relief measures. The union has announced plans to hold peaceful demonstrations if their demands aren't addressed soon, emphasizing that their financial survival is at stake.
"We don't want charity, we want support to weather this crisis," Yousuf concluded. "We need the administration to recognise that transporters are vital to Kashmir's economy and that our recovery will be essential for the region's broader economic revival."
The administration has yet to respond officially to the transporters' appeals, even as banks continue to issue recovery notices for overdue loan payments, adding pressure to an already desperate situation for thousands of families across the Valley.
