Traders in an Indian-controlled region of Kashmir are calling on the state government there to bring in measures that will make the much-hyped Cross Line of Control Trade (CLOCT) initiative work in practice.

Experts say one of the measures needed to make the initiative that promotes trade across the Line of Control (LOC) that divides disputed Kashmir viable are letter of credit (L/C) arrangements.

Trade reduction

According to the spokesman of the Salamabad Traders' Union (STU), Hilal Ahmad Turki, traders in that Indian-controlled part of Kashmir have reduced the number of trucks taking goods across the LOC from 100 vehicles a day to just 20 a day.

The STU says it may even halt trade altogether if the state government does not introduce real and practical measures to boost trade across divided Kashmir.

L/Cs needed

Some analysts say banking relationships are much needed to enable trade based on the mutual acceptance of L/Cs on each side of the LOC.

They also reckon the CLOCT initiative requires better communication and transport links between the two areas, as well as a regulatory network and a legal framework.

Trade route

CLOCT was introduced in 2008, thus reopening an old trade route that had been impassable for 60 years.

The initiative results from a 2004 peace agreement between India and Pakistan, which both claim Kashmir.

This article represents the views of the author and not necessarily those of the ICC or any of the other partners in DC-PRO.