India suspended trade across the Line of Control in Jammu and Kashmir over concern that the route was being misused by Pakistan-based elements to smuggle weapons, narcotics and fake currency, the Ministry of Home Affairs said on Thursday. New Delhi said the Centre will revisit the decision to suspend LoC trade at Jammu and Kashmir’s Salamabad and Chakkan-da-Bagh after putting in place a stricter regulatory and enforcement mechanism.

Cross-LoC trade is meant to facilitate exchange of goods of common use between local populations across the LoC in Jammu & 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.

The home ministry decision comes after the federal anti-terror probe agency National Investigation Agency told the government that a “significant number of trading concerns engaged in LoC trade” were linked with banned terror organisations involved in fuelling terrorism”.

“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,” a home ministry statement said.

The home ministry said there were also inputs to indicate the LoC route is likely to be misused to a “much larger extent” to evade higher duties after India withdrew the most favoured nation to Pakistan.

Relations between India and Pakistan have been under strain since Pulwama terror attack in February when 40 jawans of the Central Reserve Police Force were killed on Jammu-Srinagar highway.

The cross-LoC trade between Jammu and Kashmir and Pakistan-occupied Kashmir had resumed on Tuesday after nearly two weeks. The trade and travel across the LoC had been suspended on April 1 in the wake of heavy shelling from the Pakistani side. Three people including a Border Security Force officer, a woman and a five-year-old girl died in Poonch.

The relation between India and Pakistan has been under strain since Pulwama terror attack in February when 40 jawans of the Central Reserve Police Force were killed on Jammu-Srinagar highway.

Trade and travel across the LoC had been suspended on April 1 in the wake of heavy shelling from the Pakistani side. Three people including a Border Security Force officer, a woman and a five-year-old gilr died in Poonch.

The cross-LoC trade between Jammu and Kashmir and Pakistan-occupied Kashmir had just resumed on Tuesday after nearly two weeks.

First Published: Apr 18, 2019 18:37 IST