The Khalistan movement, which Pakistan's Inter-Services Intelligence (ISI) has been actively attempting to revive, is losing ground rapidly — not because of external pressure alone, but due to deep internal fractures, according to Indian intelligence officials. At the heart of the crisis is Gurpatwant Singh Pannun, the proscribed chief of the banned terror outfit Sikhs for Justice (SFJ), who is accused by rival Khalistani factions of reducing the movement to a money-spinning extortion operation.

BKI Turns on Pannun

The Babbar Khalsa International (BKI) — one of the oldest and most ideologically driven Khalistani outfits — is openly blaming Pannun for hollowing out the movement, officials say. The BKI leadership contends that the SFJ, which was originally assigned a communications role within the broader Khalistani ecosystem, has devolved into a vehicle for financial extortion, abandoning any credible separatist agenda.

'Pannun makes empty threats, and most of his own followers have realised that,' an official noted. 'This is why the SFJ is losing heavily in terms of traction.' The BKI, which still counts ideologically committed veterans in its ranks, reportedly views the SFJ's trajectory as a betrayal of the cause.

ISI's Consolidation Plan Is Failing

According to an Intelligence Bureau (IB) official, the ISI had devised a consolidation strategy: bring all Khalistan-linked outfits — including the Khalistan Liberation Force, Khalistan Tiger Force, Khalistan Zindabad Force, International Sikh Youth Federation, and the Khalistan Command Force — under the unified command of the BKI. The rationale was that multiple command centres were producing conflicting agendas and operational inefficiencies.

That plan has stalled, officials say, largely because of Pannun. 'He is a man who does not believe in ideology and is only interested in calling for referendums and also threatening people into parting with their money,' a second official said. The referendums Pannun has championed abroad — which he claims draw lakhs of participants — reportedly attract fewer than 100 people in reality, according to officials. The funds collected for these events are allegedly unaccounted for, with the ISI and rival Khalistani groups suspecting that Pannun has been diverting the money to himself and key aides.

Recruitment Drying Up in Punjab

The combined effect of financial mismanagement and ideological incoherence is being felt most acutely in Punjab, where the BKI has been struggling to recruit youth. Officials note that even those approached for recruitment are questioning the purpose of the movement, citing the extortion-driven activities of Khalistani groups abroad as a deterrent.

The ISI reportedly attempted to counter this by instructing the BKI to offer monetary incentives to potential recruits. That approach has also largely failed, with many refusing the bait on the grounds that 'the cause is worthless and the assignment too risky,' according to officials. The SFJ's decision to begin targeting and threatening ordinary Sikhs for money has further alienated the very community the movement claims to represent.

India, UK and Canada Close Ranks

The internal disarray within Khalistani groups has been compounded by a coordinated international response. India, the United Kingdom, and Canada have, according to officials, formed a united front to dismantle Khalistani networks, with intelligence-sharing arrangements now actively tracking key figures. Law enforcement agencies in these countries are reportedly maintaining close surveillance on Khalistani events, making large-scale mobilisation significantly harder.

Officials attribute this renewed international cooperation partly to the diplomatic groundwork laid under Prime Minister Narendra Modi. The trilateral pressure has further constrained the operational space available to groups like the SFJ and BKI.

Pannun's Position Weakening

Officials say Pannun's influence is on a downward curve. He is described as being closely tracked by agencies across multiple jurisdictions. More damaging, perhaps, is that he has lost the confidence of the broader Khalistani network — the very constituency he needs to remain relevant. With the ISI's consolidation strategy in disarray and recruitment at a low ebb, the Khalistan movement's revival, at least in its current form, appears increasingly unlikely, according to officials.