Jammu and Kashmir Chief Minister Omar Abdullah has said that there is an immediate need to set up a proper banking system and communication link to prevent the misuse of the cross-LoC trade by militants. The trade was initiated a year ago as a major India-Pakistan confidence building measure aimed at re-establishing business connection between the two Kashmirs.

“It is a fact that money is being channeled to militants by misusing the barter system. There is a small number of traders, who have been found misusing this trade. They are getting the goods and money isn’t going back. Instead, it is channeled to militants through their OGWs (over ground workers),” Abdullah told The Indian Express. “The continued absence of banking system and communications (between the two Kashmirs) has created a lacuna that is being exploited. Trade function is not the villain.”

Abdullah said the cross-LoC trade is a huge CBM. “Apart from its business potential, this trade has a tremendous emotional value attached to it. It is very important to be treated in that fashion,” he said. He insisted that the banking system and proper communication is essential if we want this trade to turn into a real confidence building measure, which is its aim.

“From the day our government took over, we have taken up this issue with the Central government. We have made this point very clear before the (Union) Home Minister and other officials,” he said. “The central government is aware of the serious security implications raised by this lacuna and we have been promised that the concerned departments are already framing guidelines for setting up a banking system and communication to avoid any such misuse of the trade.”

... contd.