MUZAFFARABAD:The Joint Action Committee of Hotels, Guesthouses, Restaurants, and Marriage Halls in Azad Jammu and Kashmir (AJK) on Sunday urged the government to declare Neelum Valley, Jhelum Valley and Muzaffarabad calamity-hit areas and extend relief to the crisis-stricken hospitality sector.
The demand was made at an emergency meeting of the committee, convened by Adnan Awan from Muzaffarabad, with chairman Raja Ilyas Khan, coordinator Abrar Ahmed Butt, and several members from Neelum, Kotli, Mirpur, Rawalakot, and Bagh participating via video link.
Participants said the hotel and allied industries had endured massive financial losses this year, with several properties also damaged in Neelum and Jhelum valleys.
“The situation is so dire that we are unable to pay the salaries of our employees, let alone building rents and utility bills,” the members noted, recalling that the sector had faced a similar crisis last year.
They pointed out that the India-Pakistan conflict in May had disrupted tourist inflows, while subsequent heavy rains and cloudburst-induced flash floods devastated infrastructure and left many tourists stranded, denting the region’s reputation as a safe destination.
“Now, whatever is left is being further burdened by the tax authorities and the forced imposition of point-of-sale systems at our expense,” they said.
The committee demanded a five-year exemption from income tax and GST, interest-free loans through the Bank of AJK, and waiver of interest installments on existing loans.
“We are not seeking write-offs, only a suspension of interest payments until the industry returns to stability,” they clarified. Appealing to the Jammu and Kashmir Joint Awami Action Committee for support, the hoteliers warned that the sector had been financially crippled and could not survive without urgent intervention.
“We hope the government will meet our genuine demands and help us pay staff salaries, electricity bills, and building rents,” they added.
Speaking toDawn, Mr Butt said nearly 58,000 people across Azad Kashmir were directly dependent on the hospitality sector for their livelihoods. Without immediate relief, he warned, its collapse would exacerbate unemployment and economic distress in the region.
He estimated that the crises had inflicted losses of around Rs5 billion on the AJK economy.
“Given the grim circumstances, many member entities have already laid off or are considering laying off a sizable portion of their staff,” he said.
“This will only multiply the already alarming unemployment ratio in the state, which is why the hospitality sector has been compelled to seek relief from the government.” No official reaction was immediately available on the demand.
Published in Dawn, September 8th, 2025
