New Delhi, Apr 18 (UNI) Amid reports of misuse of trade roots on Line of Control (LoC) by Pakistani elements funneling illegal weapons, narcotics and fake currency, the Centre on Thursday suspended trade across Line of Control (LoC) between Jammu and Kashmir and Pak occupied Kashmir (PoK).
According to the Ministry of Home Affairs (MHA), the suspension of trade will come in to effect from April 19.

The LoC trade was meant to facilitate exchange of goods of common usage between local populations across the LoC in Jammu and Kashmir which is allowed through two ‘Trade Facilitation Centres’ located at Salamabad near Uri in Baramulla District and Chakkan-da-Bagh in Poonch District.
The trade takes place four days a week and is based on ‘barter system’ with zero duty basis.
“The reports have been received that the LoC trade is being misused on very large scale, revealing 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”, a senior Home Ministry official said.
Unscrupulous and anti-national elements are using the route as a conduit for Hawala money, drugs and weapons, under the garb of this trade, the official added.
During the ongoing investigations of certain cases by National Investigation Agency (NIA), it has been revealed that a significant number of trading concerns engaged in LoC trade are being operated by persons closely associated with banned terrorist organisations involved in fueling terrorism and separatism, a senior officer in the security set up said.
Investigations have further revealed that some individuals, who have crossed over to Pakistan, and joined militant organisations have opened trading firms in Pakistan. These trading firms are under the control of militant organisations and are engaged in LoC trade.
After the Pulwama incident, the Government withdrew the Most Favoured Nation (MNF) 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.
The Centre is working out a stricter regulatory and enforcement mechanism and it will be put in place in consultation with various agencies and reopening of LoC trade will be revisited thereafter.

UNI AKS/ VT 1934