The attack on Pale marks the first bid by rebel forces to take a key town in the country’s breadbasket.
Others say they went willingly to support the Myanmar junta’s efforts to take down insurrectionists.
The insurgents have sealed the border in response to China’s closures as it presses anti-junta groups to negotiate
The Arakan Army has captured 10 out of the state’s 17 townships as the junta holds onto the state capital, Sittwe.
Many Myanmar people struggle with paperwork enabling them to live abroad, especially opponents of military rule.
The air raid was aimed at civilians and has spread fear in the town under rebel control since July.
The International Labor Organization said the junta failed to adhere to its recommendations.
Former minister Win Khaing died of heart disease and diabetes at the age of 74.
The refugees had crossed the border to flee junta airstrikes and arson attacks.
At least 159 died from aerial attacks in the war-torn western state in the first 10 months of 2024.