Why was Pankot demonized compared to the other village?

Let's face it: things aren't perfect in Pankot, but I'd rather live there than in the dumpy village that had it's rock "stolen" (though they don't provide any actual proof of this).

I mean, that dumpy village is a shithole. Like literally, they don't even have indoor plumbing. They're also in abject poverty and are starving since they apparently aren't good at farming.

Meanwhile, at Pankot, the architecture is great. The culture is vibrant. The food is plentiful.

"Oh, but they have child labor at Pankot!", you may ask. And? What do you think happens in the dumpy village in the film? They have child laborers that they can't even feed that have to work outside all day! I'd much be one of the well-fed child laborers in Pankot that gets real meals and the privilege of working indoors than be a child laborer and starving to death.