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1-min read

Trade Across Line of Control Suspended, Govt Says It is Being Used by Pak-based Groups to Fuel Terror

The home ministry said the decision to suspend trade was taken after it received reports that that trade routes were being misused to funnel illegal weapons, narcotics and fake currency.

News18.com

Updated:April 18, 2019, 7:22 PM IST
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Trade Across Line of Control Suspended, Govt Says It is Being Used by Pak-based Groups to Fuel Terror
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New Delhi: Trade across the Line of Control with Pakistan has been suspended by the central government with effect from midnight on Thursday as it said that there are reports that it is being misused on a "very large scale".

The home ministry said the decision to suspend trade was taken after it received reports that that trade routes were being misused by Pakistan-based elements for funnelling illegal weapons, narcotics and fake currency, among other items.

“During ongoing probe of certain cases by NIA, it has been brought out that significant number of trading concerns engaged in LoC trade are operated by persons closely associated with banned terror organisations involved in fuelling terrorism/separatism,” it said.

It said a stricter regulatory and enforcement mechanism is being worked and the issue of the reopening the trade routes will be revisited once they are implemented

The cross-LoC trade and travel between the two countries started in 2005 and 2006 after several parleys between the two nations. However, these have been periodically suspended on many occasions due to flare-ups along the border or terror strikes by Pakistani-based operatives inside India.

The cross trade is meant to enable exchange of goods of common use between local populations across the Line of Control in Jammu and Kashmir. Trade is allowed through two Trade Facilitation Centres located at Salambad in Baramulla district and Chakkan-da-Bagh in Poonch and takes place four days a week. It attracts zero duty and is based on the barter system.

However, the government said inquiries have showsn that the trade has changed its character to mostly third party trade and products from other regions, including
foreign countries, are finding their way through this route.
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