Pakistan peddling guns, fake cash via LoC

New Delhi: The Union home ministry has cited five reasons – including terrorism funding – that compelled India to suspend trade across the Line of Control (LoC) with Pakistan which was started more than a decade ago to instil confidence on both sides of the border in Kashmir.


The ministry said that third-party goods such as “almonds produced in California” were being traded across Chakan-Da-Bagh and Salamabad in violation of the spirit of the business ties that existed since October 2008 for the economic empowerment of people living in remote areas of Jammu and Kashmir.


A bunch of shell companies in Pakistan, largely operated by Indian Kashmiris who benefited from alleged links with terrorist group Hizbul Mujahideen, have been found to be trading across the LoC.

One suspicious firm believed to be supporting terrorism is Al Naseer Trading Company, which is run by Basharat Ahmad, who escaped from Budgam district of J&K to settle down in Rawalpindi, Pakistan, a National Investigation Agency (NIA) probe has revealed.

Unravelling funding of terrorism, the NIA has charged businessman Zahoor Ahmed Watali, who was president of LoC traders’ association and was close to Hurriyat leaders, with funnelling money to terrorists, separatists and subversive elements in the Valley, said home ministry officials.

Decoding the modus operandi of dubious hawala transactions for financing terrorism, an NIA probe has revealed that inimical elements in Pakistan first identify a “suitable trading firm” and hand over cash meant for passing on to anti-nationals and terrorist organisations on the Indian side, said ministry officials.

Subsequently, they said, Pakistani traders under-invoice products such as California almonds and sell them to their Indian counterparts through the official LoC route. On this side of the border, the items are sold at market price and the extra and undue profit made due to under-invoicing is handed over to terrorist organisations and their affiliates to fuel anti-India operations.