Three civilians were killed, including a police officer, and several others were injured on Monday in Pakistan-occupied Kashmir when the Pakistani Rangers, a paramilitary force under the Pakistan Army, opened fire on protesters demonstrating against rising prices in the region. This incident occurred on the same day when Prime Minister Shehbaz Sharif held an emergency meeting in Islamabad, during which he announced the immediate release of PKR 23 billion for the region to address the growing conflicts.
The economic crisis in Pakistan has led to a dramatic increase in the costs of essential commodities like food, fuel, and utilities, placing an additional burden on the struggling population. In response to this dire situation, about 70 members of the Joint Awami Action Committee, a group of traders, staged a peaceful protest. Their intention was to draw attention to the escalating costs and the hardships they were facing. However, their peaceful demonstration was met with arrests and violence, a stark contrast to their non-violent approach. The suspension of trade with India has also hit the traders hard, further exacerbating their financial difficulties.
Unrest Pakistan-Occupied Kashmir
On Friday, there were demonstrations by traders who were protesting against the high prices of electricity and food. This was not the first time such protests had taken place, as similar demonstrations had occurred in August 2023. The protests led to a general strike in Muzaffarabad, which is the largest city and capital of PoK. As a result, public transport, shops, markets, and businesses were all shut down. The Mirpur and Muzaffarabad divisions saw violent clashes between protesters and the police as large numbers of people broke barricades. The situation escalated, and on Sunday, the paramilitary Rangers were called in to provide security for government buildings, including the legislative assembly and the courts.
Pakistan has been facing a challenging economic situation for over two years, with high inflation rates and poor growth attributed to the rising costs of energy. According to the Dawn newspaper, consumer inflation has remained over 20% since May 2022, and in May 2023, it reached a staggering 38%.
According to local media, the recent protests cannot be attributed solely to the issue of skyrocketing electricity bills, rising bills, high taxes, and unemployment. The demonstrations are also a result of the Pakistan police’s use of force and the inhumane actions of the Pakistan Army. The level of antipathy towards Pakistan has escalated to the point where posters demanding a merger with India were spotted in Rawalakot by protestors.
Alleged discrimination
With a population of more than four million, Pakistan-administered Kashmir, locally known as Azad Jammu Kashmir, has a semiautonomous government with its own Prime Minister. Leaders in PoK have been protesting alleged discrimination by the government in Islamabad in the distribution of power to the area. Dawn reported on complaints by the region’s premier, Chaudhry Anwarul Haq, about not receiving their fair share of the 2,600MW of hydropower produced by the Neelum-Jhelum project. Haq has also said that his request for resources to increase the salaries of government employees in the recent budget was not accepted and that he had been forced to divert development funds to pay them.
Trade Collapse with India
In the aftermath of the Pulwama terror attack in February 2019, India increased customs duty to 200% on Pakistani products, including dry dates, rock salt, cement, and gypsum. This move had a significant impact on traders in Pakistan-occupied Kashmir, with Pakistan’s exports to India declining from an average of $45 million per month in 2018 to only $2.5 million per month between March and July 2019, as per a report by Dawn. The situation became even more challenging after Pakistan halted all trade following India’s constitutional changes in Jammu and Kashmir in August 2019. Despite having a trade potential estimated at $37 billion by the World Bank, India-Pakistan trade has declined to a low of about $2 billion annually over the last five years.
Collapse of Pakistan’s Economy
Global food and fuel prices have increased since the Russia-Ukraine war, dramatically affecting Pakistan’s forex reserves. As per the State Bank of Pakistan, the country’s forex reserves have plummeted from $20.1 billion in August 2021 to $2.9 billion in February 2023, only enough to cover a month’s worth of imports. Pakistan imports almost 40% of its primary energy supply, and its economy mainly relies on aid. The private sector is underdeveloped, and the stock market has shown minimal growth over the years. In FY23, Pakistan’s GDP contracted by 0.17%. According to the International Monetary Fund (IMF), Pakistan needs gross financing worth $123 billion over the next five years, with $21 billion expected to be sought in the fiscal year 2024-25 and $23 billion in 2025-26.
Team BharatShakti
