On 1 May, Pakistan expressed “grave concern” over India’s “multifaceted and multi-front campaign to hold G20 summit events in Jammu and Kashmir”. Pakistani President Arif Alvi deemed the Indian government’s plan to host a G20 event in Srinagar as a “nefarious design” with “ulterior motives”. Further, referring to a letter by a leader of the All Parties Hurriyat Conference, he asked the Ministry of Foreign Affairs of Pakistan to intensify efforts to “expose” India.
These statements have been made while the people in Pakistan-occupied Kashmir (PoK) struggle to meet even the most basic necessities like food, are reeling under daily electricity cuts for most of the day, and have negligible opportunities for employment. The Pakistani argument is that Jammu and Kashmir is an internationally recognised disputed territory and that participation of G20 member states in events hosted here will lend legitimacy to an “illegal occupation”. Islamabad argues that holding G20 events in the Indian Union territory is aimed at propagating a false narrative of “normalcy” in the region.
To halt these developments, Pakistan has been continuously urging its allies like China and Turkey and partners in the Organisation of Islamic Cooperation like Saudi Arabia to boycott the G20 events in Jammu and Kashmir. Moreover, it has utilised its organisations and universities as lobbying platforms to seek attention from leaders of the G20 member nations to avoid participation. On social media platforms like Twitter, Facebook etc., Pakistan is operating a massive, continuous, long and ongoing campaign to tarnish India’s reputation and promote any voice from India critical or sceptical of the government’s decisions. This normal democratic process of seeking accountability from one’s government is seen as dissent in Islamabad. Clearly, as suppressed in Pakistan, the officials in Islamabad stay in the perpetual illusion that questions are being suppressed through repression in India, as is the standard operating procedure in Pakistan.
Pakistani government officials and media have frequently attempted to argue about the Kashmiri population’s socio-economic conditions. They argue that India keeps Kashmir impoverished and disempowered and its youth unemployed. In reality, Islamabad is worried about recent positive developments in Jammu and Kashmir, while Pakistan continues to battle against severe economic crises. Interestingly, between 2021 and 2022, J&K received investment proposals worth Rs 66,000 crores, much more than the bailout package that Pakistan desires from the International Monetary Fund to avoid defaulting on its debt obligations. The 2022 budget for the union territory of J&K is more than twice the amount sought by this bailout package. The Pakistani economic situation is so volatile that the IMF had to impose conditions that Pakistan will have to secure around half of the amount ($3 billion out of $6.5 billion) from other countries.
On the other hand, domestic and foreign direct investment proposals are pouring into J&K. A Memorandum of Understanding (MoU) between the J&K and Dubai governments has been signed for FDI of over Rs 500 crore. These investments focus on developing Information Technology towers and retail infrastructure like shopping malls. In the past two years, the handicraft business has blossomed in the UT, and the government is prioritising the development of 6 to 8 handicraft and handloom clusters. Taking note of this, many businesses from Punjab have already expressed interest in setting up garment units in J&K.
Further, other private industries like steel processing facilities are also finding a home here. Just last month, the foundation stone of one of J&K’s biggest investments in the private health sector in J&K was laid. The Kashmir Medical College and Super-Specialty Hospital will offer around 150 seats for medical students and a hospital facility with 100 beds. The Zojila tunnel, which would serve as Asia’s largest tunnel, will provide all-weather connectivity to the region and is expected to boost tourism and employment opportunities in J&K in the near future.
The discovery of Lithium reserves in India for the first time, in the Reasi district, should also be celebrated enthusiastically. This discovery stands to offer tremendous opportunities to the local population. However, it will also attract envy from Pakistan and China, who seek to occupy the region for economic exploitation.
Returning to the hosting of events, several reports and studies conducted worldwide highlight that international events contribute toward making cities and regions better by driving in money, raising reputation, and highlighting the local culture. Case studies on London, Dubai and Singapore show that international conferences and business events are vital to starting city economies by acting as economic catalysts for jobs and growth. Hosting such events may lead to long-term investments, the development of local and regional businesses, increased tax revenues, and the crafting of new niche areas of attraction. As tourism and business investments grow, the hospitality and travel sector is rejuvenated, and allied employment domains observe growth.
Numerous reports by Organisation for Economic Co-operation and Development (OECD) underline that developing and implementing a framework for hosting global events can leverage economic, social and environmental benefits and ensure effective multi-level governance, coordination, collaboration, and institutional capacity. Such activities can establish collaborative partner relations across the world and contribute to legacy and local development.
This worries Islamabad and drives its propaganda campaign against India’s decisions to bring Jammu and Kashmir closer to the world. The G20’s Tourism Working Group meeting will be held in Srinagar between 22-24 May. It will showcase Kashmir as an international tourist destination and a potential business hub. Towards the end of April, the three-day Y20 pre-summit held in Ladakh, attended by more than 100 delegates from more than 30 countries, was celebrated as a welcome development in the region. But for Islamabad, keeping this region bereft of growth and development remains in its best interests.
Divyanshu Jindal is a Research Associate at NatStrat, India.