The Government of Pakistan has allocated a special fund of Rs 532 million to the administration of Pakistan-occupied Kashmir (PoK), officially designated for civilians affected by cross-border firing along the Line of Control (LoC). However, the announcement has sparked serious controversy, with multiple reports and analysts alleging that the funds could be misused to support terror outfits such as Jaish-e-Muhammad (JeM) and Lashkar-e-Taiba (LeT).
A document dated May 14, 2025, from Pakistan’s Ministry of Kashmir Affairs outlines the fund’s stated purpose as relief for civilians injured or killed in recent escalations along the LoC. The release comes shortly after India’s military initiative “Operation Sindoor,” which targeted 21 terrorist camps across Pakistan and PoK. This operation was carried out in response to a deadly terrorist attack in Pahalgam, Jammu & Kashmir, on April 22, 2025, which claimed 26 civilian lives, including one Nepalese national.
Despite Pakistan’s claims of humanitarian intent, critics argue that the funding may serve as a covert mechanism to channel resources to terrorist networks operating in the region. JeM and LeT, both internationally designated terror groups, have been implicated in numerous high-profile attacks, including the 2001 Indian Parliament attack and the 2008 Mumbai attacks. Although Pakistan formally banned these groups in 2019, intelligence sources suggest they continue operations under new aliases such as Al Madina, allegedly with support from elements within the state.
The fund release also coincides with an increase in cross-border violence. Since early May, at least 11 civilians have died in Jammu & Kashmir’s Poonch district due to Pakistani shelling—an escalation locals describe as the worst in over four decades. Reports indicate that the attacks may be in retaliation to India’s targeted strikes on terror infrastructure in Pakistan’s Punjab province and in PoK, including at Markaz Taiba, a known LeT training center.
Observers point to a longstanding pattern of Pakistan using civilian aid narratives to obscure support for militant activities in the Kashmir region. The Ministry of Kashmir Affairs, which governs PoK, has often faced criticism for undermining the region’s autonomy. The 1974 Interim Constitution Act, introduced under Prime Minister Zulfikar Ali Bhutto, curtailed local self-rule, enabling Islamabad to maintain tight control over PoK’s political and security dynamics.
The international community has voiced growing concern over the rising tensions. British Prime Minister Keir Starmer recently urged both India and Pakistan to pursue dialogue and de-escalation. Other world leaders have echoed the sentiment, fearing further destabilization between the two nuclear-armed nations.
India, meanwhile, maintains that its military actions were necessary responses to terror threats emanating from across the border. Citing the Pahalgam attack, Indian officials argue that the persistent presence of terrorist networks in Pakistan necessitates firm defensive measures.
As the region teeters on the brink of further conflict, the Rs 532 million allocation has become emblematic of deeper mistrust and contested narratives. While Pakistan continues to frame the move as a humanitarian gesture, growing allegations of backdoor terror financing threaten to further strain already fragile regional dynamics.
