India suspends cross LoC trade with Pakistan; says routes misused for inflow of weapons, narcotics

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 fueling terrorism/separatism”, the MHA said.

SALAMABAD, KASHMIR, INDIA - JANUARY 11: An Indian policeman opens a gate for Pakistani vehicles after unloading their goods at the trade facilitation centre in the border area near Uri on January 11, 2013 in Salamabad, 120 km (75 miles) northwest of Srinagar, the summer capital of Indian Administered Kashshmir, India. (Photo by Yawar Nazir/Getty Images)

New Delhi: Indian government has decided to suspend all the cross LoC trade with Pakistan from Friday, stating that Pakistan based elements were misusing trade routes for inflow of weapons, narcotics and currency. “The Government of India has received reports that cross LoC trade routes in Jammu and Kashmir are being misused by Pakistan based elements. These misuse involves illegal inflows of weapons, narcotics and currency,” the information from the Ministry of Home Affairs stated. “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 said. “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 fueling terrorism/separatism”, the MHA was quoted by ANI as saying. So it's decided to suspend LoC trade at Salamabad and Chakkan-da-Bagh in Jammu and Kashmir. Meanwhile, stricter regulatory and enforcement mechanism is being worked out and will be put in place in consultation with various agencies. The issue of reopening of LoC trade will be revisited thereafter, it said. It may be recalled that the LoC trade is meant to facilitate exchange of goods of common use between local populations across the LoC in Jammu and  Kashmir. The trade is allowed through two Trade Facilitation Centres located at Salamabad, Uri, District Baramulla and Chakkan-da-Bagh, District Poonch. The trade takes place four days a week. The Trade is based on Barter system and zero duty basis. After the Pulwama incident, Government of India has withdrawn the MFN status to Pakistan. Inputs have also been received that in order to evade the consequent higher duty, LoC trade is likely to be misused to a much larger extent. (with agency inputs)