Srinagar, Oct 4: Even as the cross-LoC trade between AJK and Kashmir Valley is about to complete a year, a number of shortcomings continue to plague the trade that was started with much fanfare. While the lack of inter-banking and inter-communication is serving as a major irritant, the absence of any mechanism for currency exchange has turned the trade into a barter system.
 The trade through the historical Jhelum Valley Road was thrown open last October after a gap of nearly 60 years when the pickups rolled from either side of the Kaman post. Since then the exercise of exchange of goods between the two sides is being conducted twice every week.
 According to the custodian at the trade facilitation office, Muhammad Ashraf Wani the total volume of the trade since its inception over a year ago has touched Rs 38 crore.
 He said while the merchandise worth Rs 16.30 crore was exported from here in 940 truckloads, goods worth Rs 21.84 crore were received from AJK in 1197 trucks during this period.
 Wani said the volume of trade had increased over the time. The traders however believe the volume could have multiplied manifold but for the shortcomings.
 “There are a number of irritants in the trade. First and foremost being that there is no mechanism of currency exchange which has reduced it into a barter system,” said Dr Mubeen Shah, ex. president Kashmir Chamber of Commerce and Industry.
 He said either there should be a common currency to make the exchange possible, or both Indian and Pakistani currencies should be used with reference to US dollar for fixing of exchange rates.
 He said it was unfortunate that the traders from Kashmir were never allowed to go to AJK to meet to their counterparts. “The traders should be given special cards to enable them to go to AJK so that they can meet their counterparts and assess the market situation and discuss the problems in the trade,” he said.
 He said the AJK people can call here but “we can’t make a call to AJK as the communication from this side to the AJK is barred.”
 President, Federation Chamber of Industries Kashmir, Shakeel Qalandar said the LoC trade was not even the barter trade. “There is no mechanism for remittances as on date. I wonder how this trade has been going on for the past one year,” he said.
 After opening the JV Road for cross LoC travel in April 2005, the road was opened for trade last October as part of a confidence building measure between India and Pakistan.

Lastupdate on : Mon, 5 Oct 2009 21:30:00 Makkah time
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