Include cross-border trade in NSA-level talks: J&K government to Centre

NEW DELHI: J&K government has asked the Centre to take up with Pakistan at the upcoming NSA-level talks the issue of formalising the banking channel instead of barter, given the annual cross-border trader of about Rs 800 crore between the two countries.

The external affairs ministry, which heads the joint working group, had during the last meeting between India and Pakistan proposed to operationalise the banking channels for trade at Salamabad-Uri and Poonch-Rawalkote sectors. However, Pakistan later opposed the move.

The state is keen that the Modi government includes “cross-border trade” in its agenda for the talks scheduled for August 23 as it hopes this will pave the way for a formal meeting of the joint working group.

The home ministry officials said they had discussed the matter with the external affairs ministry but added that they were not sure whether this would be part of the agenda for the talks between NSA Ajit Doval and his Pakistani counterpart Sartaj Aziz.

“This issue is related to trade and commerce, but since external affairs ministry is part of the joint working group we have informed them regarding the demand of the state government,” an official said.

The state also conveyed that due to an increase in ceasefire violations the cross-border trade at the LoC has been badly hit and it is therefore necessary that trade at the LoC is included in the talks. As per another official, two Indian banks, the SBI and BoI, were allowed to operate in Pakistan in 2012, while Pakistan’s National Bank and privatelyowned United Bank were selected for running full banking operations in India once they obtained licences.