The government has suspended the LoC trade in Jammu and Kashmir from Friday, April 19. The Home Ministry has issued an order in this regard.
The decision was taken as the government has been receiving reports that the Cross LoC trade routes are being misused by the Pakistan-based elements for funnelling illegal weapons, narcotics and fake currency.
The LoC trade is meant to facilitate the exchange of goods of common use between local populations 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 of District Poonch. The trade is based on the Barter system and zero duty basis.
After the Pulwama incident, Government had withdrawn the Most Favoured Nation status to Pakistan.