Ladakh Stakeholders Appeal to FM for Tourism Relief After Pahalgam Attack

Ladakh’s tourism-dependent economy has taken a severe blow following the April 22 Pahalgam terror attack, which sent shockwaves across Jammu & Kashmir and beyond. In response, a high-level delegation from Leh met Finance Minister Nirmala Sitharaman during her June 2025 visit, urging special relief to stabilise the crisis-hit sector.

Why Relief Is Critical Now

Tourist arrivals have plummeted post-attack, pressuring hotels, tour operators, transport services, and allied businesses across Ladakh. Sector leaders—spanning hotel associations, transport unions, travel agencies, and bike groups—warned that declining footfall is spreading economic distress beyond tourism.

Key Relief Demands

Delegates submitted a memorandum led by LAHDC Chairman Tashi Gyalson, seeking:

• Tourism is designated as a distressed sector, enabling special fiscal support like loan moratoriums.

• Rescheduling of existing bank loans and moratorium extensions to ease immediate cash flow stress.

• Restoration of FY 2025–26 budget allocations, reflecting actual expenditure cycles up to December instead of September.
  
  

Institutional & Infrastructure Requests

Beyond finances, impacts extend to governance and logistics:

• Empower Leh administrators: They requested expanding the sanctioning power of district officials to ₹10 crore, aligning with the chief engineers.

• Banking reforms: A split in J&K Grameen Bank’s resources and personnel, plus a proposal for a Ladakh Regional Rural Bank, aims to bolster local credit access.

• New institutions: Champions called for a Ladakh Development Finance Corporation and a full-fledged RBI office in Leh to enhance oversight and financial inclusion.
  
  

Strategic Timing & Government Support

FM Sitharaman visited Leh from June 15–18, inaugurating development projects and underscoring the Centre’s commitment to Ladakh’s growth. Delegates referenced programs like Vibrant Villages, which support remote border communities.

The urgency demanded is tied directly to immediate economic collapse, with delayed arrivals risking broader social and infrastructural setbacks.

Final Takeaways

• Urgent fiscal safeguards—loan relief and sector classification—are crucial to preserve Ladakh’s tourism lifeline.

• Institutional reforms, including financing bodies and administrative authority, aim to build resilience.

• Nationwide coordination that balances regional needs with national priorities will be key to recovery.

If these relief measures are approved, Ladakh’s tourism ecosystem—hotels, transport, local livelihoods—can begin rebuilding traveller confidence.

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