Govt suspends cross-LoC trade over terrorism fears

new delhi — India on Thursday announced suspension of trade across the Line of Control (LoC) in Jammu and Kashmir from Friday, saying it is being misused by Pakistan-based elements to send weapons and illegal currency to fuel terrorism and separatism in this country.

The government said the decision, taken more than a month after withdrawing the Most Favoured Nation (MFN) status granted to Pakistan, will be revisited after stricter regulatory mechanisms are put in place to ensure that ‘only bonafide trade’ takes place, benefitting the people of Jammu and Kashmir.

“The government of India has received reports that cross-LoC trade routes in Jammu and Kashmir are being misused by Pakistanbased elements. This misuse involves illegal inflows of weapons, narcotics and currency,” an order issued by the Ministry of Home Affairs (MHA) said.

“The LoC trade mechanism is therefore being suspended pending the putting into place of a stricter regulatory regime. This is to ensure that only bonafide trade takes place, for the benefit of the people of Jammu and Kashmir, through this mechanism,” it added.

The MHA, in a statement here, said that during the ongoing investigations of certain cases by the National Investigation Agency (NIA), “it has been brought out that a significant number of trading concerns engaged in LoC trade are being operated by persons closely associated with banned terrorist organisations involved in fuelling terrorism/separatism”.

“It has, therefore, been decided by the government to suspend the LoC trade at Salamabad and Chakkanda-Bagh in Jammu and Kashmir with immediate effect.”

The cross-LoC trading mechanism was launched in October 2008 as a major confidence-building measure between India and Pakistan. —