Karenni resistance forces stated that the claim made by the Junta, asserting that Loikaw residents temporarily displaced by the conflict can now return to their homes, is not just  nonsensical, but also a fabrication and propaganda.

While aggressively propagandising that war-displaced locals from Loikaw can safely return home, the Junta is simultaneously endeavoring to revive its administrative mechanism under the guise of rebuilding efforts in the areas of Loikaw still under its control.

Pro-Junta propaganda Telegram channels are also claiming that electricity and water supply systems in Loikaw have been restored.

Residents of downtown Loikaw wards including Minsu, Dawnoeku, Shanpine, Dawtama, Kyitharyar, Nawbawwam, Acre-500, and Yaenikan also reported that electricity has been restored.

Saw Ta Eh Soe, the information officer of the Karenni Nationalities Defense Force (KNDF), emphasized that displaced Loikaw residents should not be repatriated yet, cautioning against falling for the Junta's false propaganda.

"There are no major battles happening, but sometimes there are smaller clashes. The Junta's soldiers are still active in Loikaw, so it is not safe for people to go back yet. The town is still a battlefield that may flare up suddenly, so it is too dangerous for locals to go home or retrieve their belongings. Basically nobody should go back to Loikaw right now”, he said.

Saw Ta Eh Soe added that the Junta's claim of enabling residents to return to Loikaw serves only to trap civilians in the town and exploit them as human shields.

"In Loikaw still a war zone, restoring administrative mechanisms is completely unrealistic. The Junta hides truth, spreads false propaganda, aiming to use locals as human shields if they return”, he told NMG.

He mentioned that Junta troops remain active in the vicinity of Loikaw, carrying out operations in certain areas.

Five families, initially swayed by the Junta's propaganda, returned to Loikaw on May 5 from their displacement, but upon encountering warning posters from the resistance forces cautioning that Loikaw remains unsafe, they promptly reversed course.

The Karenni war-displaced individuals who sought refuge in the southern regions of Shan State are keen to return home due to various hardships in accommodation, livelihood, and employment opportunities in those areas.

Following the initiation of 'Operation 1111', the resistance forces managed to seize 80 percent of Karenni State's territory, yet Loikaw remains under Junta control.