Kashmir Economy Cripples As Internet Blockade Continues

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“Internet related and IT sector businesses were badly affected due to the lack of internet facility and losses can be assessed only after getting details from each venture,”

Mohammad Yaqoob

Srinagar: The continuous blockade of internet for the past more than three months in Kashmir has badly hit the economy of the valley particularly the online businesses and Information Technology entrepreneurs.

Ever since the central government revoked special status of the Jammu and Kashmir on August 5, 2019 and imposed restrictions on communication channels particularly internet , the digital marketing companies, online banking services, courier services, tour operators, IT entrepreneurs, you tubers, news portal owners and other online businessmen and women have suffered  great losses.

Peer Mashooq Ahmad 30, who would sell SIMS and provide recharge services of Airtel, Jio, and BSNL telecommunications services said that he was availing postpaid paytm service by Clix Finance India Private limited before the communication services were blocked on August 5.

  “I always used to pay the utilized outstanding amount on or before the due date, but after the revocation of J & K’s special status, I couldn’t pay the utilized amount on or before the time which was 7th August 2019. Now paytm has sent me legal notice for recovery of money,” Mashooq said.

 “I am worried how I can send money to them though I have kept money for them including late fee for which I am not responsible at all,” Peer added.

There are numerous cases like Peer, who are facing similar problems after the internet and communication blockade in valley.

Sameer Ahmad, an online tour and travel agent said, “Tourists from different parts of country and outside country cannot book their services as internet has been halting in valley for consecutive 100 days.”

“Even it is impossible for visitors or tourists to book a ticket for aviation services for visiting valley in these days of uncertainty, and it is very hard to tell exact losses incurred by these service providers,” he added.

 John Mohammad, an hotelier said, that even though travel advisory by the government has been revoked but they are not getting any visitors.  “Tourists are not able to book hotels from any part of the world as there is no internet.”

Rameez Raja, 35, an authorized Village Level Entrepreneur (VLE) of Srinagar who runs a Common Service Centre (CSE) which provides digital services for all government and semi government sponsored schemes like application forms of PAN cards, passport, adhaar cards, health schemes like Pradhan Mantri Jan Arogiya Yojina(PMJAY) also feels dismayed with ban on internet.

“There are a numerous patients suffering from fatal diseases like cancer or who need a kidney transplantation and are awaiting the restoration of internet so that they can enroll their names in PMJAY,” said Rameez.

Aijaz ul Haq, a shopkeeper said, “I was running online services for filling up of application form for various purposes like admission forms, hajj forms, scholarship forms, passport forms, entrance form etc.  But owing to prevailing situations I had to bear a loss of 80,000 rupees,” he said.

There are hundreds of shopkeepers, only in Srinagar city like Aijaz who incur huge losses due to prolonged restrictions and shutdown in valley.

Representational Image

People who used internet for imports and exports had to go through similar issues.

Mushtaq Ahmad, 48, importer and exporter of handlooms and handicraft products, said that he was not able to execute orders for domestic and international customers, as courier offices shut their business.

“Without internet, they couldn’t track the consignments,” he said.

Earlier Jio launched 4G mobile internet service free in the valley in 2016. Then other telecommunications service providers joined this race, like Airtel bharti, Vodafone,BSNL, etc.

The unemployed educated youth of Jammu and Kashmir, started finding opportunities in Internet industry as careers.   They launched youtube channels, blogs, and also worked as freelancer for various private organizations in order to meet their basic needs. Some of the youths had been working as entrepreneurs for several years until the revocation of J & K’s special status on August 5.

Tabasum , a young YouTuber, said, “It seemed to me, as someone has poured water on my dreams of becoming an entrepreneur by blocking internet as there is lot of competition on youtube.”

 Secretary of Domestic Tour Operation Kashmir, a union of private travel agents, Firdous Ahmad Guroo said that sans internet their bookings were been cancelled as they were not able to communicate with the clients.

 “There are almost 2700 travel agents throughout Valley, who were forced to cancel hotel bookings, flight bookings owing to unavailability of communication and internet facilities,” Guroo said.

 “We were neither able to make new bookings nor we could reply e-mails.  Numerous travel agents have lent money from the banks to run businesses. Beside this, we bear additional expenses of office rent, employee salaries, electricity bills, landline bills etc,” he said.

It is very difficult to ascertain the quantum of losses incurred by the internet related businesses. However, the businesses and traders have been in stress post August 5.

President Kashmir Chamber of Commerce and Industries, Sheikh Ashiq told media that the total losses incurred by different sectors of Kashmir economy which includes internet related businesses are 12000 crores.

Director industries and commerce, Mehmood Shah said that It would be too early to tell the exact quantum losses incurred by internet related and other IT sector businesses as  their assessment is yet to be made.

“Internet related and IT sector businesses were badly affected due to the lack of internet facility and losses can be assessed only after getting details from each venture,” Shah said.

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