Financial burdens, sustained anxiety
Financial burdens on people of Kashmir are pushing them to a wall. Families, students, traders, tourism stakeholders, and even government employees are struggling to cope up with the financial challenges. Uncertainty and unpredictable economy have created a situation where loans have become sources of sustained anxiety. As of date many Kashmiris are calling for comprehensive loan waivers or at least substantial relief packages to help them rebuild lives and restore dignity. Their plea is not rooted in escapism but in deep social and economic distress.
In Kashmir, providing quality education to the children has always been a priority. Parents often put everything at stake to send their children to schools, colleges, and professional institutions. In the process of making their wards achieve their goals thousands of parents avail student loans with a hope that they would be able to repay. But many are struggling to clear their debt as their incomes have been disrupted repeatedly.
Many families simply cannot keep up with EMIs. Students, instead of focusing on studies or careers, are weighed down by the fear of becoming defaulters even before their lives begin. It appears that the generation caught in educational debt is set to acquire good qualifications but it may end up economically trapped. Without intervention, Kashmir risks seeing youth migration rise further, mental health problems intensify, and the dream of an empowered new generation fades.
During the past few years tourism witnessed a massive boom in Kashmir as tourist arrivals broke all the records. This led to many youth venturing into the business of tourist cabs, vans, and small transport vehicles. These were not luxuries but primary sources of livelihood. However, this year’s April 22 Pahalgam terror attack, which left 26 civilians, mostly tourists dead, dealt a severe blow to the tourism industry.
These youngsters through these cabs used to earn their living and pay the bank instalments also, but during the past one year these car loans have become unmanageable burdens. Their cabs have no passengers.
Pertinently, the Pahalgam terror attack once again brought to fore the fragility of the tourism season in Kashmir. A single incident drastically reduced tourist arrivals, leaving drivers unable to earn even a basic income, let alone pay EMIs. Fuel prices, service costs, and insurance have added further pressure. As these youngsters became defaulters they received repeated bank notices, warnings of seizure, and threats of auction of their vehicles. Without support, the backbone of Kashmir’s travel economy risks collapse. Not only the travel industry, the hospitality sector too has faced the brunt of decline in the number of tourist arrivals.
Kashmir’s younger generation, inspired by the vibrancy of a changing India, had eagerly entered entrepreneurship. Coffee shops, food outlets, boutique hotels, homestays, and small tourism-driven projects sprung up across Srinagar, Gulmarg, Pahalgam, and Sonamarg. Loans taken for these ventures have piled up.
Young entrepreneurs find themselves trapped. Many are unable to pay rent, staff salaries, or EMIs. They fear losing their businesses—along with their confidence and future prospects. To save this budding entrepreneurial culture, targeted loan restructuring, interest waivers, and capital infusion programs are essential.
These ventures represented a leap towards economic independence. As tourism was booming the banks encouraged many youngsters to take loans, even at high interest rates, without factoring in the volatility of Kashmir’s market. A single terror attack and subsequent travel advisories from foreign countries have wiped out earnings of the entire season.
Not only car loans but the loans taken for business ventures also have become liabilities, people are even crumbling under the pressure of housing loans.
Many people had taken housing and business loans with the hope that their earnings would increase but it didn’t happen. They are struggling to pay their EMIs on time, due to their unstable incomes.
The demand for relief in housing loans, including reduction in taxes, building permission fees, and relaxation in penalties, is reasonable. Housing is not a luxury; it is a fundamental human right. At the very least, Kashmiris argue, the government should ensure that fee is waived off in municipal permissions, relief is given in property taxes and moratoriums on housing loan EMIs. A home should provide security—not financial suffocation. Not many people talk about many municipality employees, sanitation workers, healthcare staff, and linemen—the frontline force that keeps Kashmir moving. They are battling severe financial distress as they are unable to make their ends meet in modest salaries. The growing living costs, loans taken for different reasons have put them in a quandary. Delayed salaries, irregular allowances, and harsh working conditions have added to their woes and make them defaulters. They deserve financial protection, debt relief, and humane loan recovery practices.
To make Kashmir prosperous, stable, and empowered, easing the financial burden of its people is the first step. A comprehensive policy needs to be devised for allowing people to breathe freely. Financial burdens and unstable income are not helping their cause. They need a respite. A common man is looking towards the government with a hope that a helping hand would be extended and he would be pulled out from this quagmire of uncertainty.
The writer is a board member of International Centre for Peace Studies (ICPS) New Delhi
