India suspends cross-LoC trade with Pak

India announced suspension of trade across the Line of Control (LoC) in Jammu and Kashmir (J&K), saying it is being misused by Pakistan-based elements to send weapons and illegal currency to fuel terrorism and separatism in this country. The cross-LoC trading mechanism was launched in October 2008 as a major confidence-building measure between India and Pakistan.

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 bona fide trade” takes place, benefitting the people of J&K.

“The government of India has received reports that cross-LoC trade routes in Jammu and Kashmir are being misused by Pakistan-based 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 Ministry of Home Affairs (MHA), in a statement said, 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 Chakkan-da-Bagh in Jammu and Kashmir with immediate effect.”

The mechanism, meant to facilitate exchange of goods of common use between local populations across the LoC in Jammu and Kashmir on the basis of barter system and zero duty, is allowed four days a week through the two trade facilitation centres Salamabad in Baramulla district and Chakkan-da-Bagh in Poonch district.

The MHA said that the probe conducted by the NIA “revealed that some individuals, who have crossed over to Pakistan and joined militant organisations, have opened trading firms there and these were under the control of militant organisations and were engaged in the LoC trade”.

The cross-LoC bus service, ‘Paigam-eAman’ (Message of Peace), is, however, operating between the Indian and Pakistan administered parts of Jammu and Kashmir despite the suspension of the cross-LoC trade by Indian authorities.