The attack has shaken our economy—we must rebuild with urgency and unity, says Chief Minister Omar Abdullah
Srinagar 26 May 2025: In the aftermath of the devastating April 22 terror attack in Pahalgam that claimed 26 lives and derailed Kashmir’s fragile economy, a high-level delegation from the Kashmir Chamber of Commerce and Industry (KCCI) met with Hon’ble Chief Minister Mr. Omar Abdullah at the Civil Secretariat today to present a comprehensive economic revival strategy.
The KCCI team, led by President Javid Ahmad Tenga, submitted a detailed two-part economic memorandum to address the economic chaos and ensure long-term sectoral recovery. Accompanying Tenga were Senior Vice President Ashiq Hussain Shangloo, Junior Vice President Fayaz Ahmad Punjabi, Secretary General Faiz Ahmad Bakshi, Treasurer Zubair Mahajan, past presidents, and members of the executive committee.
Top Bureaucrats Join Deliberations
On the government’s side, the meeting saw participation from Chief Secretary Atal Dulloo, Additional Chief Secretary Dheeraj Gupta, and senior officers including Shailendra Kumar (Agriculture & Finance), Vikramjit Singh (Industries & Commerce), Sarmad Hafeez (Youth Services and Sports), and Raja Yaqoub (Tourism), among others.
CM Vows Relief Package for Post-Attack Economic Crisis
Speaking at the meeting, Chief Minister Omar Abdullah acknowledged the far-reaching economic impact of the Pahalgam attack, stating:
“The tragic events of April 22 have deeply impacted Kashmir’s economic fabric. The government is committed to designing a tailored economic relief package that will be submitted to the Central Government at the earliest.”
He emphasized that the brunt of the crisis is being borne by daily wagers, transporters, and small-scale tourism operators, calling for urgent handholding support.
The Chief Minister announced plans to personally lead tourism promotion efforts and promised to review the ban on tourist destinations to reinvigorate public confidence in Kashmir as a safe destination.
KCCI’s Two-Pronged Economic Revival Blueprint
The KCCI presented a comprehensive two-section revival memorandum, focused on immediate stabilization and sector-specific recovery.
Section 1: Urgent Economic Stabilization Measures
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5% Interest Subvention on all business loans to help cope with revenue loss.
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One-Time Loan Moratorium to avoid NPA classifications.
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Collateral-Free Emergency Credit Line offering 20% working capital, one-year moratorium, and 36-month repayment.
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Temporary Tax Waivers: Suspension of municipal/property taxes and vehicle-related levies in impacted zones.
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Soft Loan Scheme for Non-Loanees: Low-interest, collateral-free credit to support informal sector businesses.
Section 2: Sector-Specific Recovery Recommendations
Tourism Sector
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Reopening of restricted destinations and promotion of eco-tourism, adventure, and leisure travel.
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Simplified licensing for hoteliers and tourism operators.
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Special LTC incentives for government employees across India to boost footfall.
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Resolution of pending hotel lease cases and amendments to the Tourism Trade Act.
Horticulture & Agriculture
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Expansion of high-density apple plantations, cherries, walnuts, peaches, and strawberries.
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Establishment of pesticide quality control centers.
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Crop insurance schemes tailored for apples, saffron, and other high-value produce.
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Handicrafts & Exports
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Reduction of GST to 5% on handmade goods.
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Revival of national and international handicraft expos.
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Air freight subsidies to facilitate smoother export logistics.
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Youth & Community Development
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Anti-drug initiatives through structured sports and recreational programs.
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Ban on misuse of school playgrounds for commercial fairs (SP College cited).
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Investment in wetland and waterbody conservation.
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Power Sector
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Power Amnesty Scheme for commercial users.
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Industrial Development
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Revival of NCSS schemes and creation of modern industrial estates.
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Banking Sector
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One-Time Settlement (OTS) policy for MSME-classified NPAs.
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General Trade & Infrastructure
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Address warehousing shortages in Srinagar and adjoining areas.
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Private Education Sector
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KCCI raised issues related to NOCs, land leases, and affiliations faced by private schools.
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KCCI Reaffirms Commitment to Joint Action
Secretary General Faiz Ahmad Bakshi reiterated the business community’s solidarity and commitment to work with the government.
“This meeting reflects the spirit of constructive engagement. We are hopeful that the government’s assurances, combined with KCCI’s strategic roadmap, will guide Kashmir through this economic storm.”
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A delegation of the Kashmir Chamber of Commerce and Industry (KCCI), led by its President Javid Ahmad Tenga, met with Hon’ble Chief Minister Mr. Omar Abdullah today at the Civil Secretariat to deliberate upon the urgent economic challenges faced by the region following the tragic Pahalgam attack on April 22.
The KCCI delegation comprised Senior Vice President Ashiq Hussain Shangloo, Junior Vice President Fayaz Ahmad Punjabi, Secretary General Faiz Ahmad Bakshi, Treasurer Zubair Mahajan, Past presidents, and executive committee members. On the government side, the meeting was attended by Chief Secretary Atal Dulloo, Additional Chief Secretary Dheeraj Gupta, Principal Secretary Agriculture & Finance Shailendra Kumar, Commissioner Secretary Industries and Commerce Vikramjit Singh, Commissioner Secretary Youth Services and Sports Sarmad Hafeez, Director Tourism Kashmir Raja Yaqoub, and other senior officials.
During the meeting, the KCCI presented a detailed two-part economic revival plan aimed at addressing the severe setbacks faced by Kashmir’s economy in the aftermath of the attack and subsequent developments. The first part of the memorandum focused on urgent measures to stabilize the economic downturn, while the second part provided sector-specific recommendations to ensure revival and long-term sustainability.
Chief Minister Omar Abdullah listened attentively to the issues presented by the KCCI delegation and acknowledged the validity of their concerns. He remarked, “The tragic events of April 22 have deeply impacted Kashmir’s economic fabric, and the government will take all necessary steps to address these challenges. This includes formulating a specific economic relief package tailored exclusively to the consequences of this incident. This package will be carefully crafted and submitted to the Central Government.”
The Chief Minister noted that the Pahalgam attack had disrupted daily economic activities. He stressed that daily wagers, transporters involved in the tourism sector, and small tourism operators have borne the brunt of this crisis. The government remains committed to providing handholding support to promote tourism and mitigate the challenges being faced by businesses and families dependent on this sector.”He said that the goverment will soon start tourism promotion and chief minister will himself participate in it and also review ban on tourist desintations.
The KCCI delegation outlined a comprehensive memorandum categorized into two sections:
Urgent Economic Stabilization Measures
Interest Subvention Scheme: A recommended 5% interest subvention on all business loans to provide much-needed financial relief to businesses facing revenue loss.
One-Time Loan Moratorium: Advocate for moratorium on loan repayments and protection of businesses from Non-Performing Asset (NPA) classification during this period.
Collateral-Free Working Capital Credit Line: Proposal for a regional Guaranteed Emergency Credit Line offering businesses up to 20% working capital with a one-year moratorium and 36-month repayment period.
Tax Relief Measures: Temporary suspension of municipal taxes, property taxes in impacted areas (e.g., Badami Bagh Cantonment), and waiver of transport-related taxes on passenger and commercial vehicles.
Soft Loan Scheme for Non-Loanee Enterprises: Assistance for entities without formal loans to manage liquidity challenges by introducing low-interest, collateral-free loans.
2. Sector-Specific Recommendations
Tourism
– Reopening of tourist destinations and facilitation of year-round eco-tourism, adventure, and leisure activities.
– Simplification of licensing processes for tourism operators and hoteliers.
– Special Leave Travel Concession (LTC) incentives for government employees across India to encourage travel to Kashmir.
– Resolution of pending hotel lease cases and amendments to the Tourism Trade Act to support long-term tourism growth.
Horticulture and Agriculture
– Expansion of high-density apple plantations, along with cultivation of cherries, walnuts, almonds, peaches, and strawberries in new zones.
– Establishment of quality control centers for the availability of high-quality yet affordable pesticides.
– Implementation of a tailored crop insurance scheme to protect farmers cultivating high-value cash crops, such as apples and saffron, from financial risks.
Handicrafts and Exports
– Reduction of GST on all handmade items to 5%, considering the labor-intensive nature of this iconic sector.
– Revival of government-sponsored national and international handicrafts expos.
– Air freight subsidies to support smoother logistical access to export markets.
Youth Empowerment and Community Development
– Initiatives to combat drug addiction among youth by providing structured recreational opportunities and programs.
– Development of sports facilities, playgrounds, banning misuse of educational institution playgrounds by allowing commercial exhibitions/ fairs ( The instance of SP College sports ground was given) and community centers to engage youth in constructive ways.
– Conservation of natural resources especially Waterbodies/wetlands which are in dire straits by allocating sufficient funds for maintenance and revival.
Power Sector
– Introduction of a power amnesty scheme to support commercial consumers and local businesses.
Industrial Development
– Reintroduction of schemes like NCSS to support the growth of industrial units.
– Development of modern industrial estates to facilitate smooth industrial expansion prior to Banking Sector:
One-Time Settlement Scheme. One-Time Settlement Scheme. KCCI sought OTS for NPAs as per MSME norms to help them settle their account.
General Trade: Dearth of Warehousing.
Youth-Led Initiatives:
To rebuild resilience among the younger generation and guide them on a constructive path, we propose the implementation of youth-led initiatives focusing on:
Combating drug addiction
Creation of playgrounds and recreational spaces
Private School: KCCI discussed issues faced by Private school like NOC’s, land lease , affiliation etc
Chief Minister Omar Abdullah assured the KCCI delegation of the government’s commitment to implementing viable and practical measures to support the region’s economic recovery. He proposed working closely with KCCI to refine and present the revival proposal to the Central Government. .
The KCCI delegation expressed gratitude to the Hon’ble Chief Minister for his support and reassurances, while reaffirming their commitment to collaborating with the government to bring Kashmir’s economy back on track. The Chamber expressed optimism that constructive engagement between the business community and the government would enable the region to overcome the current crisis.
Faiz Ahmad Bakshi
Secretary General
The Kashmir Chamber of Commerce & Industry INC.
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E-MAIL : thekashmirchamber@gmail.com
Website : www.thekcci.in
