KTA Warns of Economic Collapse in IIOJK Amid Shrinking Business Activity

As shops remain open but buyers stay away, Kashmir’s business leaders are sounding the alarm over a silent economic breakdown gripping the occupied territory.

The Kashmir Trade Alliance (KTA) has issued a serious warning about the deepening economic crisis in Indian Illegally Occupied Jammu and Kashmir (IIOJK), highlighting the severe challenges faced by local businesses and workers.

In a press statement, KTA President Aijaz Shahdhar described the current business environment as bleak and unsustainable. “Shops may appear open, but in reality, business is at a standstill,” Shahdhar said. He pointed to a sharp drop in consumer spending and nearly stagnant economic activity throughout the region.

According to the KTA, despite some outward signs of normalcy, the lack of liquidity, consumer confidence, and financial support has left many businesses on the brink of collapse. “There is no movement in the market. Traders, suppliers, and service providers are struggling to survive,” Shahdhar added.

The KTA has called on the IIOJK administration to urgently roll out a comprehensive economic stimulus package aimed at providing relief to affected sectors. Without timely financial intervention, Shahdhar warned, many businesses may be forced to shut down permanently, triggering mass unemployment and wider economic despair.

Adding to the crisis, the KTA criticized the administration for delaying payments owed to local contractors and suppliers. Shahdhar emphasized that the release of these funds is essential to injecting liquidity into the market and reviving stalled commercial operations.

“These pending disbursements are not just financial obligations—they are lifelines for businesses that are already struggling to stay afloat,” he stated.

The ongoing financial paralysis is also expected to have broader social consequences, including increased joblessness, mental distress, and a rise in public frustration, especially among the youth. The KTA fears that if no corrective steps are taken soon, social unrest could grow, further destabilizing the already fragile situation in the region.

Observers note that the economic woes in IIOJK are not limited to one sector but span retail, services, tourism, construction, and agriculture, all of which have been adversely impacted by political instability, militarization, and policy inaction.

The KTA has urged both local and central authorities to treat the issue with the urgency it deserves, warning that continued neglect could have irreversible consequences for the territory’s economic fabric.