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India, Pakistan resume shelling in Kashmir, killing 6

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SRINAGAR, India — Indian and Pakistani soldiers again targeted each other’s posts and villages along their volatile frontier in disputed Kashmir, killing at least six civilians and wounding six others, officials said Saturday.

Tensions have been running high since Indian aircraft crossed into Pakistan on Tuesday, carrying out what India called a pre-emptive strike against militants blamed for a Feb. 14 suicide bombing in Indian-controlled Kashmir that killed 40 Indian troops. Pakistan retaliated, shooting down a fighter jet Wednesday and detaining its pilot, who was returned to India on Friday in a peace gesture.

Fighting resumed overnight into dawn Saturday, leaving two siblings and their mother dead in Indian-controlled Kashmir. The three died after a shell fired by Pakistani soldiers hit their home in the Poonch region near the Line of Control that divides Kashmir between the nuclear-armed rivals, Indian police said. The children’s father was critically wounded.

In Pakistan-controlled Kashmir, government official Umar Azam said Indian troops with heavy weapons “indiscriminately targeted border villagers” along the Line of Control, killing a boy and wounding three other people. He said several homes were destroyed by Indian shelling.

Shelling and firing of small arms began again Saturday after a lull of a few hours. A Pakistani military statement said two civilians were killed and two others wounded in the fresh fighting. The Indian army said Pakistani troops attacked Indian posts at several places along the militarized line.

Officials from both countries used the routine description for the military confrontations, saying their soldiers retaliated “befittingly,” and blamed each other for “unprovoked” violations of the 2003 cease-fire accord at several sectors along the Kashmir frontier, targeting army posts as well as villages.

Since tensions escalated following the Feb. 14 suicide attack, world leaders have scrambled to head off an all-out war between India and Pakistan. The rivals have fought two of their three wars over Kashmir since their independence from British rule in 1947.

The current violence marks the most serious escalation of their long-simmering conflict since 1999, when Pakistan’s military sent a ground force into Indian-controlled Kashmir. That year also saw an Indian fighter jet shoot down a Pakistani naval aircraft, killing all 16 on board.

The latest wave of tensions began after the militant group Jaish-e-Mohammad claimed responsibility for the suicide bombing by a Kashmiri militant on Indian paramilitary forces. India has long accused Pakistan of cultivating such militant groups to attack it. Pakistan has said it was not involved in that attack and that it was ready to help New Delhi in the investigation.

On both sides of Kashmir, thousands of people have fled to government-run temporary shelters or relatives’ homes in safer areas to escape deadly and relentless shelling along the frontier. Many of these villages dot the rugged and mountainous frontier, which is marked by razor wire, watch towers and bunkers amid tangled bushes, forests and fields of rice and corn.

“These battles are fought on our bodies, in our homes and fields, and we still don’t have anything in our hands. We are at the mercy of these soldiers,” said Mohammed Akram, a resident in the Mendhar area in Indian-controlled Kashmir.

Sakina, a young woman who fled to a shelter with her two children, said the frequent shelling had made them “homeless in our own land.”

In Pakistani-administered Kashmir, many displaced families urged the international community to help resolve the issue of Kashmir so that they can live peacefully.

“Whenever India fires mortars, it’s we who suffer,” said Mohammad Latif, a labourer who took refuge at a government building that was vacated for sheltering displaced families.

“I don’t care whether the Indian pilot is gone or not, I don’t care who released him and why, but I want to know whether peace will return to us after his return to India,” said Mohammad Sadiq, a shopkeeper who also was among the displaced. He said the latest tensions between Pakistan and India rose so suddenly that some people sold their sheep, cows and buffaloes at throwaway prices in his native Chikothi town.

“We did not know whether we will get any shelter and how could we take our animals” with us, he said.

People living along the Line of Control keep bunkers near their homes, but residents say they cannot spend day and night in them.

India accuses Pakistan of arming and training the rebels and sending them into Indian-controlled Kashmir to launch attacks against government targets. Pakistan denies the charge, saying it provides moral and diplomatic support to Kashmiris fighting for right to self-determination.

Rebel groups have been fighting Indian rule since 1989 and demand that Kashmir be united either under Pakistani rule or as an independent country. Anti-India sentiment runs deep in the region, and most people support the rebels’ cause against Indian rule while also participating in civilian street protests against Indian control. Nearly 70,000 people have been killed in the uprising and the ensuing Indian military crackdown.

___

Mughal reported from Muzafarabad, Pakistan. Associated Press writer Munir Ahmed in Islamabad contributed to this report.

Roshan Mughal And Aijaz Hussain, The Associated Press

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Taxpayers Federation calling on BC Government to scrap failed Carbon Tax

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From the Canadian Taxpayers Federation

By Carson Binda 

BC Government promised carbon tax would reduce CO2 by 33%. It has done nothing.

The Canadian Taxpayers Federation is calling on the British Columbia government to scrap the carbon tax as new data shows the province’s carbon emissions have continued to rise, despite the oldest carbon tax in the country.

“The carbon tax isn’t reducing carbon emissions like the politicians promised,” said Carson Binda, B.C. Director for the Canadian Taxpayers Federation. “Premier David Eby needs to axe the tax now to save British Columbians money.”

Emissions data from the provincial government shows that British Columbia’s emissions have risen since the introduction of a carbon tax.

Total emissions in 2007, the last year without a provincial carbon tax, stood at 65.5 MtCO2e, while 2022 emissions data shows an increase to 65.6 MtCO2e.

When the carbon tax was introduced, the B.C. government pledged that it would reduce greenhouse gas emissions by 33 per cent.

The Eby government plans to increase the B.C. carbon tax again on April 1, 2025. After that increase, the carbon tax will add 21 cents to the cost of a litre of natural gas, 25 cents per litre of diesel and 18 cents per cubic meter of natural gas.

“The carbon tax has cost British Columbians a lot of money, but it hasn’t helped the environment as promised,” Binda said. “Eby has a simple choice: scrap the carbon tax before April 1, or force British Columbians to pay even more to heat our homes and drive to work.”

If a family fills up the minivan once per week for a year, the carbon tax will cost them $728. The carbon tax on natural gas will add $435 to the average family’s home heating bills in the 12 months after the April 1 carbon tax hike.

Other provinces, like Saskatchewan, have unilaterally stopped collecting the carbon tax on essentials like home heating and have not faced consequences from Ottawa.

“British Columbians need real relief from the costs of the provincial carbon tax,” Binda said. “Eby needs to stop waiting for permission from the leaderless federal government and scrap the tax on British Columbians.”

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The problem with deficits and debt

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From the Fraser Institute

By Tegan Hill and Jake Fuss

This fiscal year (2024/25), the federal government and eight out of 10 provinces project a budget deficit, meaning they’re spending more than collecting in revenues. Unfortunately, this trend isn’t new. Many Canadian governments—including the federal government—have routinely ran deficits over the last decade.

But why should Canadians care? If you listen to some politicians (and even some economists), they say deficits—and the debt they produce—are no big deal. But in reality, the consequences of government debt are real and land squarely on everyday Canadians.

Budget deficits, which occur when the government spends more than it collects in revenue over the fiscal year, fuel debt accumulation. For example, since 2015, the federal government’s large and persistent deficits have more than doubled total federal debt, which will reach a projected $2.2 trillion this fiscal year. That has real world consequences. Here are a few of them:

Diverted Program Spending: Just as Canadians must pay interest on their own mortgages or car loans, taxpayers must pay interest on government debt. Each dollar spent paying interest is a dollar diverted from public programs such as health care and education, or potential tax relief. This fiscal year, federal debt interest costs will reach $53.7 billion or $1,301 per Canadian. And that number doesn’t include provincial government debt interest, which varies by province. In Ontario, for example, debt interest costs are projected to be $12.7 billion or $789 per Ontarian.

Higher Taxes in the Future: When governments run deficits, they’re borrowing to pay for today’s spending. But eventually someone (i.e. future generations of Canadians) must pay for this borrowing in the form of higher taxes. For example, if you’re a 16-year-old Canadian in 2025, you’ll pay an estimated $29,663 over your lifetime in additional personal income taxes (that you would otherwise not pay) due to Canada’s ballooning federal debt. By comparison, a 65-year-old will pay an estimated $2,433. Younger Canadians clearly bear a disproportionately large share of the government debt being accumulated currently.

Risks of rising interest rates: When governments run deficits, they increase demand for borrowing. In other words, governments compete with individuals, families and businesses for the savings available for borrowing. In response, interest rates rise, and subsequently, so does the cost of servicing government debt. Of course, the private sector also must pay these higher interest rates, which can reduce the level of private investment in the economy. In other words, private investment that would have occurred no longer does because of higher interest rates, which reduces overall economic growth—the foundation for job-creation and prosperity. Not surprisingly, as government debt has increased, business investment has declined—specifically, business investment per worker fell from $18,363 in 2014 to $14,687 in 2021 (inflation-adjusted).

Risk of Inflation: When governments increase spending, particularly with borrowed money, they add more money to the economy, which can fuel inflation. According to a 2023 report from Scotiabank, government spending contributed significantly to higher interest rates in Canada, accounting for an estimated 42 per cent of the increase in the Bank of Canada’s rate since the first quarter of 2022. As a result, many Canadians have seen the costs of their borrowing—mortgages, car loans, lines of credit—soar in recent years.

Recession Risks: The accumulation of deficits and debt, which do not enhance productivity in the economy, weaken the government’s ability to deal with future challenges including economic downturns because the government has less fiscal capacity available to take on more debt. That’s because during a recession, government spending automatically increases and government revenues decrease, even before policymakers react with any specific measures. For example, as unemployment rises, employment insurance (EI) payments automatically increase, while revenues for EI decrease. Therefore, when a downturn or recession hits, and the government wants to spend even more money beyond these automatic programs, it must go further into debt.

Government debt comes with major consequences for Canadians. To alleviate the pain of government debt on Canadians, our policymakers should work to balance their budgets in 2025.

Tegan Hill

Director, Alberta Policy, Fraser Institute

Jake Fuss

Director, Fiscal Studies, Fraser Institute
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