Cutting off one more thread! India suspends LoC trade with Pakistan on reports of terror funding

Taking cognizance of the reports that the Cross-Line of Control (LoC) trade routes are being misused, the Ministry of Home Affairs has issued orders to suspend the LoC trade in Jammu and Kashmir from Friday. This comes in reference to the reports that the trade routes are being misused by the Pakistan based elements for funnelling illegal weapons, narcotics and fake currency, etc

The Line of Control (LoC) trade is meant to facilitate exchange of goods between the local people 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 the Barter system and zero duty basis.

It has been reported that the LoC trade has been misused on a large scale. It has been noticed that the trade has seen exchange of goods and products from other regions including foreign countries. Unscrupulous and anti-national elements are using the route as a conduit for Hawala money, drug, and weapons, under the garb of this trade.

During the ongoing investigations of certain cases by NIA, it has come across that people associated with banned terrorist organisations are involved in this illegal act. Investigations have further revealed that some individuals, who have crossed over to Pakistan and joined militant organizations have opened trading firms in Pakistan. These trading firms are under the control of militant organizations and are engaged in LoC trade.

After the Pulwama incident, the Government of India has withdrawn the Most Favoured Nation (MFN) status to Pakistan.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.

It has, therefore, been decided by the Government of India to suspend the LoC trade at Salamabad and Chakkan-da-Bagh in Jammu and Kashmir with immediate effect. Meanwhile, a stricter regulatory & 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.

COURTESY:- NEWS BHARATI