Opinion | Energy and Economy: US vs Them

When people living beside major rivers face shortages or struggle to obtain affordable electricity, while the same rivers are viewed primarily as sources of national power generation, resentment is inevitable

Kashmir is blessed with mountains, rivers, forests and enormous hydropower potential. Yet the economic fortunes of people on the two sides of the Line of Control tell two very different stories. The contrast between Jammu and Kashmir (J&K), administered by India, and Pakistan-occupied Jammu and Kashmir (PoJK) is particularly visible in energy, infrastructure and economic opportunity.J&K’s rivers have long represented one of its greatest economic assets. India has increasingly recognised this potential and invested in converting it into productive infrastructure. Major hydropower projects, stronger transmission networks, roads and other connectivity projects are gradually creating the foundations for a more modern regional economy.The development of projects such as Pakal Dul, Kiru, Kwar and Ratle demonstrates India’s willingness to make long-term investments in Kashmir’s energy sector.

These projects are not simply about producing electricity. They generate employment, improve connectivity, create opportunities for local businesses and strengthen the infrastructure needed for industrial and economic growth.

India’s approach is also increasingly focused on integrating J&K with the wider national economy. Better roads, railway connectivity, power infrastructure, digital services and investment in tourism and other sectors are reducing the isolation that historically constrained the region. The objective is not merely to exploit Kashmir’s resources, but to create an ecosystem in which those resources can contribute to sustained economic development.There are challenges, of course. Electricity supply, tariffs, unemployment and the environmental impact of large infrastructure projects remain legitimate concerns. But these challenges are being addressed within a framework of continuous investment and institutional development. The direction is towards greater connectivity, greater energy capacity and greater economic integration.

The situation in PoJK presents a starkly different picture. The region possesses enormous hydropower potential, yet its people have repeatedly complained that they do not receive benefits proportionate to the resources generated from their land and rivers. Questions over electricity supply, pricing, development funds and political representation have repeatedly produced public anger.This is ultimately a failure of policy rather than a failure of Kashmir’s potential. Pakistan has had decades to build a strong and sustainable economic model in the territory under its control. Instead, development has frequently remained entangled with political uncertainty and dependence on Islamabad. Even where hydropower projects have been initiated, financing and implementation have often struggled to match the scale of the region’s potential. The consequences are visible in public protests and growing economic frustration. When people living beside major rivers face shortages or struggle to obtain affordable electricity, while the same rivers are viewed primarily as sources of national power generation, resentment is inevitable. The fundamental issue is simple: Kashmir’s resources should first and foremost contribute to the prosperity of Kashmir’s people. Development cannot be reduced to announcing projects. It requires reliable electricity, good roads, employment, investment, education, healthcare and institutions capable of delivering these services transparently.India’s experience in J&K demonstrates what sustained public investment and integration with a larger economy can achieve. The region still faces economic and social challenges, but the expanding network of infrastructure and investment offers Kashmir’s youth a broader economic horizon.

Pakistan, by contrast, must answer why a resource-rich territory continues to experience such deep dissatisfaction over basic economic issues. Kashmir does not lack resources. It has never lacked talent or potential either. What matters is governance that converts those advantages into opportunity. India’s growing investment in J&K points in that direction. Pakistan’s record in PoJK, marked by persistent grievances over electricity, development and political empowerment, raises serious questions about its priorities. Ultimately, the future of Kashmir should be measured not by political rhetoric but by the quality of life available to its people. On energy and economic development, the contrast between investment and neglect is becoming increasingly difficult to ignore.

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