October 21, 2008 was a memorable day in the history of Indo-Pak relations. As a result of protracted talks between the two countries, both had agreed to initiate Confidence Building Measures (CBMs) from each side so that the long standing estrangement could be put an end to. Confidence deficit has been the bane leading to other misunderstandings between the two countries. Some commentators are of the view that pressures from some friendly countries had helped India and Pakistan agree to confidence building measures.
There are a few areas in which restoration of confidence could prove useful in changing the mindset. However, it was agreed that trade and commerce are powerful factors to help normalization of relations. As a result, two Cross LoC trading points were agreed upon. These are Chakan da Bagh in Poonch sector and Salamabad in Uri sector of Kashmir. From October 21, 2008 till ending February 2013, a period of five years and three months, total trade conducted through these two points has been worth Rs. 1039.3296 crore and 1758.6040 crore respectively. In overall estimation, the two Cross-LoC trading points have not been functioning as satisfactorily as was expected. Several handicaps remain in place and despite repeated demands of the traders from either side the hurdles in the way could not be removed so far. There is no modern banking facility to conduct the trade in accordance with recognized international norms. There is no telephonic link between the two trading sides, and there are many hassles in obtaining travel documents/visa etc. Though on our side, all efforts are made to ensure feasibility of trade across the LoC, but some serious difficulties remain.
One important difficulty in this process is the misuse of whatever facilities have been provided by the two governments. There is a list of goods that have been agreed upon to be traded by the two sides. The quantum of the goods proposed to be traded is also specified. Sometimes it happens that goods not specified are tried to the imported/exported clandestinely. Such incidents have come to the notice of the authorities and they have taken proper action that was desirable. Yet much more problematic area is that of transacting hawala money generally meant to go to the militants who are active in the valley and other parts of our side of Kashmir. Hawala means paying the money to somebody in the locality who has conduits in other part of the LoC who manages to bring that money to the actual recipient and in the process he gets his share of commission. This is an old and clandestine practice and has been carried out by those indulging in this unlawful activity. However, some intransigent traders carrying small trade along the Cross-LoC have been found to be indulging in hawala money transactions, which are illegal, and cognizable under the provisions of Unlawful Activities Prevention Act. A recent report published in the columns of this paper says that instances of misuse of Cross-LoC trade have come to notice and investigation in these is underway. No fewer than 18 persons have been booked for indulging in Unlawful Activities, namely hawals activity and money to the tune of 2.38 crore rupees has been transacted. By and large, the militants operating in the valley and other parts of the country, have been receiving money through hawala channels and as such the matter is much more serious because militancy has not been totally wiped out of the valley and other parts of the state. Ever since the opening of the Cross-LoC trade, five cases of hawala transactions have been registered.
Yet one more difficulty in dealing with persons arrested/detained on account of charges of hawala money that falls under the Unlawful Activities Prevention Act is the inadequacy of law that would cover the offence for further prosecution. It has been seen that those indulging in the unlawful activity called hawala are not strictly from J&K State. People detained so far come from different parts of the valley and also from the neighbouring State of Punjab or even from other parts of the country. Maybe that some of the defaulters do not know how inadvertently they are providing facilities to the militants. We would like that the government takes a serious view of miscreants indulging in this anti-national activity and hands them harsh punishment to deter others to walk in their footsteps. Trade between two parts cannot be promoted by trying to subvert national interests. Those arrested/detained on suspicion or against whom strong and cognizable evidence is at hand, should be handled in accordance with the law of the land. Any accused found of running the errand for the militants should never be spared.This will help build confidence and mutual trust.
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