that they do not mingle with anybody. In case of any exigency, if the driver has to stay overnight on this side, the respective deputy commissioner will have to nominate an officer who will stay with the person till he is sent back home.
To expand the trade and address the demands of traders, the state government has requested the government of India to include 98 more items in the export list and five in the import list which include metal and alloy products, pharmaceutical formulations and drugs, pesticides, chemical products like paints and varnishes, plastic products, readymade garments and dress materials, edible products, electric and electrical items and other miscellaneous products. A model has been proposed by the department of financial services for establishing banking mechanism for the cross LoC trade. The model envisages that commercial banks in J&K and other side of Kashmir provide a facility to their respective exporters to realize their dues by opening a Trade Facilitation Account at their end. The government has provided 15 days for the settlement cycle. The cross rates of INR/ PKR would be arrived by using market determined US$/INR and US$/PKR rates. As per the model, both the Reserve Bank of India and the State Bank of Pakistan would not be involved in the process of trade settlement and would not bear the exchange rate risk in part or in entirety. To undertake transactions, the banks need permission from their respective governments.
In a major sigh of relief to traders across LoC, home minister, Sushil Kumar Shinde, during his visit to state this week, promised trans-LoC traders that the government will consider giving them fixed line telephone to talk to their counterparts on the other side of the divide. He met a delegation of traders for half an hour during his visit to the Chakan-da-Bagh Trade Facilitation Centre (TFC) in Poonch. Trans-LoC trade apart, the minister reviewed the security situation especially in wake of frequent gun battles between rival armies in Krishna Ghati sector of Poonch.
The process to allow the traders to use make phone calls has been taken well by the community. The basic problem which many feel is the prevailing barter system and strong voices are emerging to set a banking system. At times, currency fluctuations also cause losses to traders involved in this trade.
“The trade would have flourished more if the two countries agree to set up a system of banking”, Dr Mubeen Shah, president, J&K Joint Chamber of Commerce of Industries (JKJCCI), says while commenting about the overall development of cross Loc trade. However, common people feel the trade, which was started with much fanfare, has failed to move beyond symbolism. As the trade continues to remain hostage to animosity between India and Pakistan, the people demand to declare pre-partition J&K as a free trading zone. “Trade can’t be done in hiccups. The breathing space should be given to make it a success,” argues a student, Raahat Sidiqi.
