Reviving Kashmir’s economy

For the people of Kashmir, 1989 was not just a year, it was a seismic shift. It marked the beginning of a protracted period of violence and uncertainty, sponsored by Pakistan-backed terrorism that plunged the region into turmoil.

The idyllic landscape, once known for its serene beauty, became a battleground where gunshots replaced bird song and fear became the pervasive scent in the air. In this cauldron of chaos, the common man, the silent observer, bore the brunt of the suffering.

While the world watched from afar, Kashmiris lived through years of curfews, shutdowns, and the chilling dread of the unknown. Each morning brought the possibility of another tragedy, another life stolen by the senseless violence.

Their dreams were shattered, livelihoods jeopardized, and the simple act of living transformed into a daily struggle for survival.

The statistics, cold and unforgiving, paint a grim picture: 45,000 lives extinguished, countless families fragmented, and an entire region held hostage by fear.

Through these decades of torment, a disturbing reality emerged – a disconnect between the lived experience of Kashmiris and the policies implemented by the financial institutions operating within the region. These institutions, often fueled by cold, hard numbers, seemed oblivious to the trauma etched deep into the collective psyche of the people. Punitive measures were levied on businesses that couldn't operate freely, loans turned sour due to disruptions caused by terror strikes, and the burden of debt further crippled those already beaten down by violence.

It is time for an awakening, a moment of profound understanding. Financial institutions, particularly J&K Bank, cannot treat Kashmir like any other region. The ghosts of the past – the shuttered shops, the deserted streets, the echoing gunshots – cannot be ignored when assessing loan repayments or making credit decisions. To truly serve the people of Kashmir, these institutions must shed their detached, bureaucratic lens and adopt an empathetic approach.

This call for empathy extends beyond J&K Bank. GST officers, with their rigid adherence to quotas and deadlines, must recognize the unique circumstances of a people scarred by years of instability.
Income Tax authorities, while rightfully focusing on financial accountability, should differentiate between chronic defaulters and those who were driven to non-compliance by forces beyond their control. To punish a man for falling behind on his taxes when his shop remained forcibly closed for months is not justice; it is simply adding salt to an already bleeding wound.

However, empathy does not equate to leniency. Those who have profited from the chaos, amassed wealth through shady means, and deliberately evaded their fiscal obligations must face the full weight of the law. Their actions are not the result of circumstance, but a deliberate betrayal of the very society they live in. Their ill-gotten gains must be clawed back, not for vengeance, but to ensure fairness and rebuild a sense of trust within the community.

It is imperative that the Income Tax Department remains vigilant against tax evasion. Those individuals or entities deliberately evading taxes must be subjected to severe consequences to deter others
from engaging in such activities. A transparent and robust tax system will not only contribute to national development but also foster a sense of responsibility and accountability among the citizens.
The abrogation of Article 370 in 2019 by Prime Minister Narendra Modi led regime marked a turning point for Kashmir. A flicker of hope ignited, a promise of peace that had seemed elusive for decades led to the region embarking on the path of healing and rebuilding.

Financial institutions have a crucial role to play in building “Naya Jammu and Kashmir.” They must become instruments of progress, not punishment. They must understand that economic recovery cannot happen in a vacuum; it requires sensitivity, empathy, and a deep understanding of the scars that still run deep.

Another crucial aspect that financial institutions cannot afford to ignore is the failure of successive governments in Jammu and Kashmir to address the disruptions caused by strikes and shutdowns. For three decades, those in power remained ineffective in quelling the unrest fueled by Pakistan-sponsored separatists. The Union Home Ministry's revelation that Kashmir used to remain shut for six months is a testament to the apathy displayed by former rulers who acted as mute spectators to the suffering of the common people.

By adopting a responsible and humane approach, J&K Bank and other financial institutions can become agents of positive change. They can help businesses rise from the ashes, provide a lifeline to struggling families, and contribute to the rebuilding of a vibrant and prosperous Kashmir.

The path ahead will be long and arduous, but with compassion and understanding as their guiding principles, these institutions can help write a new chapter for the people of Kashmir, one where the echoes of the past give way to the promise of a brighter future.

The author is a former Journalist presently heading International Centre for Peace Studies ( ICPS ) New Delhi and also a senior leader of Bhartiya Janta Party