India suspends cross the Line of Control trade with neighbour Pakistan in Jammu and Kashmir.
The action was taken upon the orders of the Home Ministry who recieved reports that the cross LoC trade routes were being used by the Pakistan based elements as channels to move illegal weapons, narcotics, fake currency and more.
The letter issued by the government of India, reminded that the LoC trade is meant to facilitate exchange of goods of that would be of common use to the local populations across the Line of Control in Jammu and Kashmir.
The report further stated that trade is allowed through two Trade Facilitation Centres located at Salambad, Uri, District Baramulla and Chakkan-da-Bagh, District Poonch. The trade occurs four days a week and is based on Barter system and zero duty basis.
However, the government recieved reports that suggested that the LoC trade funnel is being misused largely. It was revealed that the trade changed its nature into a third party trade and that the products from other regions, including foreign countries found its way through the route.
The government press note further claimed that exploitative and anti-national elements are leveraging the route under the garb of trade to conduit Hawala money, drugs and weaponary.
Here is the press note: