Srinagar May 23 (KNS): The Kashmir Trade Alliance (KTA) has expressed grave concern over the persistent economic slowdown in the Kashmir Valley, highlighting the dire condition of local businesses and urging the Jammu and Kashmir Government to take immediate steps to revive the economy.
In a statement issued to KNS, KTA President Aijaz Shahdhar painted a grim picture of the current business environment in the region. “Shops may be open, but the business is virtually at a standstill,” Shahdhar said. “There is a visible absence of consumer spending, and the overall economic activity has come to a near halt.”
The KTA emphasized the need for urgent governmental intervention and called for a comprehensive stimulus package to support struggling businesses. Shahdhar strongly appealed to the administration to consider an interest subvention scheme of 5 percent, which he said would significantly reduce the financial stress on entrepreneurs, traders, and small business owners who are already battling high operational costs and low revenue.
"Interest subvention will make borrowing more affordable for businesses and help them sustain operations in these challenging times," he said. "Without such financial relief, many establishments may be forced to shut down permanently.Click Here To Follow Our WhatsApp Channel"
The KTA President also urged the government to *immediately release all pending payments* owed to contractors and government suppliers. He said that these long-overdue disbursements are crucial to restoring liquidity in the local market.
"Timely payment of government dues will help inject much-needed cash into the economy. It will benefit not only the contractors but also have a cascading effect on allied sectors, including labor, transport, and retail," he added.
Shahdhar warned that if corrective steps are not taken soon, the region could face a deeper economic crisis, with rising unemployment and social distress.
"The business community is the backbone of Kashmir’s economy. Supporting it through policy measures and financial packages is not just a necessity, but a responsibility," the KTA statement noted.
The Alliance also requested the Lieutenant Governor-led administration to hold consultations with trade bodies to design effective and inclusive economic policies that reflect ground realities.
KTA concluded the statement by reaffirming its commitment to work with the government and other stakeholders to revive economic activity in the Valley, while also calling for swift and decisive action to prevent further losses.