By Chaman Koul, AIP
Jammu: The Jammu and Kashmir government is seeking permission for extending the trans-LoC trade between India and Pakistan from two to four days a week, besides increasing the number of items enlisted for trade.
Given the massive increase in the volume of barter, the government has already submitted detailed projects worth Rs 75 crore for infrastructure up gradation at the twin border windows; the state legislature was informed on Wednesday.
Since the beginning of the trade in October 2008 at LoC in Uri and Chakan da Bagh of Poonch, the two sides have registered a business turnover of Rs 264 crore by the end of January.
This was despite the trade being limited to five hours, twice a week and the windows getting closed after protests over disputes or climatic reasons.
The economic survey for the state that Finance Minister Abdul Rahim Rather tabled in the Legislative Assembly last Friday suggested trade was better in Poonch where traders, mostly from the Jammu city imported merchandise worth Rs 93.83 crore in lieu of exports worth Rs 52.69 crore.
On the Jhelum Valley Road (JVR) that connects Srinagar with PoK capital Muzaffarabad, the survey said the Trade Facilitation Centre (TFC) recorded an import of Rs 64.67 crore and export of Rs 52.72 crore. However, last week, Chakkan da Bagh window recorded the highest turnover of Rs 10 crore in two days.
Industries Minister Surjit Salathia said the Union Finance Ministry is looking into the state government request of facilitating financial transactions as the prevailing barter system is making “it difficult to carry on,” he said, is examining the request of permitting trade for four days instead of two.
India and Pakistan had permitted the zero duty trade in 21 items which have created a bit of confusion. This had enabled the two sides to exchange items that actually do not grow either in Jammu and Kashmir or Pakistan occupied Kashmir.
Apart from fierce criticism from the exporter-importer community from Punjab suggesting the zero duty trade has encouraged some major importers to use trans-LoC window through agents and touts, traders do admit that quite a few trading items originate from Jammu and Kashmir.
The Centre once invoked the pathogen threat as a way out to prevent the import of Chinese garlic. Salthia said they have already sent a detailed list of the Jammu and Kashmir items to the commerce Ministry to “resolve the confusion” besides seeking another list of items for approval.
Salthia said the telecommunication Ministry has already provided ISD facility in Kashmir and Jammu to enable traders to talk to their counterparts.
However, he said, the continuous rise in the volume of trade had made existing infrastructure at both places insufficient.
The government has already submitted two project reports seeking an infrastructure upgrade worth Rs 75 crore. Out of this, he said, Rs 40.27 crore would be required for TFC Slamabad and another Rs 35.33 crore for TFC Chakkan da Bagh.
The two projects have gone under ASIDE scheme. To ensure more security on the two openings, the government has suggested the MHA to install “Whole body truck scanners” and it is being considered.