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India to suspend cross-LoC trade from Friday

Last Updated 18 April 2019, 14:49 IST

India on Thursday said it will be suspending its cross-Line of Control (LoC) trade with Pakistan from Friday as these trade routes are "being misused" by Pakistan-based elements for funnelling illegal weapons, narcotics and fake currency.

An official statement said the government was in possession of information that the LoC trade is being misused on a "very large scale" and that it has changed its character to mostly third party trade and products from other regions, including foreign countries, are finding their way through this route.

"Unscrupulous and anti-national elements are using the route as a conduit for Hawala money, drugs and weapons, under the garb of this trade," it said.

The cross-LoC trade, which is meant to facilitate exchange of goods of common use between local populations across the LoC in Jammu and Kashmir, allowed through two trade facilitation centres located at Salambad in Uri and Chakkan-da-Bagh in Poonch. The trade takes place four days a week and it based on barter system and zero duty basis.

It came to light during investigations by National Investigation Agency (NIA) 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 and separatism in Kashmir.

"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," the statement said.

After the Pulwama terror strike, India had withdrawn the Most Favoured Nation (MFN) status to Pakistan.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, the statement said.

"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 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," the statement said.

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(Published 18 April 2019, 14:23 IST)

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