Nearly 300 displaced people (IDPs) who fled from Lashio Town and are currently still sheltering in the Shan State capital, Taunggyi, face economic hardships and are struggling to survive.

Residents of Lashio Town started fleeing at the beginning of July 2024 when the Myanmar National Democratic Alliance Army (MNDAA) started attacking junta positions in Lashio Town on 3 July 2024. The offensive against Lashio Town was part of the second phase of Operation 1027 by the Three Brotherhood Alliance, of which the MNDAA is a member. About 300 civilians were killed during fighting to take Lashio Town.

The MNDAA finally took control of Lashio on 3 August 2024 after which residents started returning but the junta started launching airstrikes against the town in August and September 2024 which caused them to flee again. Since the beginning of 2025 residents again started returning to Lashio Town.

Though many IDPs from Lashio Town have now returned home, nearly 300 remain in Taunggyi City and are facing financial difficulties, according to an aid worker assisting them who spoke to SHAN.

He said: “There are still over 200 people staying at Pidakat Monastery and more than 80 at the Shan Literature and Culture Center, making nearly 300 in total. Some have lost their homes in the bombings, some have lost family, and others are still too shaken to return. But honestly, staying here in Taunggyi isn’t really an option anymore either for them. Things are getting harder by the day, especially financially.”

A displaced woman from Lashio sheltering in Taunggyi City who runs a business there said that it is challenging to run a business in Taunggyi, particularly for people who are not locals. But, she believes that returning to Lashio Town, currently under the control of the MNDAA, is not currently an option as the town is facing an economic downturn and has become a hub for gambling dens, KTV (karaoke) lounges, and massage parlours associated with prostitution.

She said: “If we go back to Lashio, doing any kind of business there isn’t easy either. I went back for a short while just to see how things were. Only those who really couldn’t stay in Taunggyi anymore have returned, because they had no other choice. The only way to earn a living in Lashio now is maybe by running a small shop or working in one of the gambling places. But doing business in Taunggyi isn’t easy for me either, since I’m not from here.”

She explained that IDPs from Lashio Town sheltering in Taunggyi City are provided with shelter and rice but have to manage all their other needs themselves. Recently, there has been a significant drop in the number of donors providing help which has made the IDPs situation even harder.

“At the Shan Literature and Culture Center, the IDPs are given a place to stay and electricity. For food, only rice is provided, while everything else like vegetables, charcoal, and daily essentials, they have to manage on their own. That means IDPs need to find work and earn some money to cover those things,” she added.

The MNDAA has agreed to hand back Lashio Town to the junta by 21 April 2025 but will continue controlling the area around the town.