By Er. Anil Kumar Shan
Jammu & Kashmir is in the grip of a severe cash flow crisis that has crippled economic activity across all sectors. What was once a functional economy is now experiencing total liquidity paralysis, pushing ordinary citizens and key stakeholders into financial distress.
From the shopkeeper in Kishtwar to the daily wage earner in Nagseni, people are struggling to meet basic necessities like food, healthcare, and transportation. The collapse of cash circulation has led to stalled payments, halted development projects, and widespread unemployment.
Businesses Are Collapsing. Labour Is Idle. Development Is Stalled.
Contractors, once pillars of local development, are now facing bankruptcy due to unpaid dues and zero working capital.
Labourers are being laid off en masse with no source of income or social safety nets.
Salaried employees and pensioners are facing delayed payments amid rising costs of living.
Banks, instead of offering relief, are reportedly demanding advance EMIs, worsening borrower distress.
This isn’t merely an economic downturn — it’s a humanitarian crisis in the making. The mismatch between rising expenses and the complete freeze in cash movement is dismantling the region’s socio-economic structure brick by brick.
Urgent Interventions Needed:
- Immediate infusion of liquidity into local markets and business ecosystems.
- Timely payment of government dues to contractors, suppliers, and employees.
- Support schemes for small traders, daily wage earners, and MSMEs.
- Regulation of financial institutions to prevent coercive practices like advance EMI collection.
- Special economic monitoring cell to assess and respond to localized distress.
If this crisis is not addressed with swift and compassionate governance, Jammu & Kashmir risks descending into deeper economic stagnation and social instability.
Let us remember: This is not just a financial problem — it’s a fight for dignity, survival, and social harmony. We must act now to protect the future of our people.
Author’s Bio: Er. Anil Kumar Shan is a Chartered Engineer & Contested Independent Candidate, 50-Padar Nagseni GELA 2024.
