Epilogue

because there is more to know

www.epilogue.in CONTENTS

Editor Prologue 3
Zafar Iqbal Choudhary Letters to the editor 4
Consulting Editor Hear & Hear
D. Suba Chandran Who Said What 5
Associate Editor News Wrap
Irm Amin Baig J&K Stories 7
Designs & Layout Column
Keshav Sharma
Vision From Valley 44
Mailing Address Srinagar Sentiments 51
PO Box 50, HO Gandhi Nagar, Volume 2, Issue 9, October 2008 Days Gone By 53
Jammu
IN FOCUS Ladakh
Phones & email LoC Trade Project Himank 44
Office : +91 191 2493136
Editorial: +91 94191 80762
Diary 47
Administration: +91 94190 00123 17 Beginning Of A New Chapter
editor@epilogue.in 18 Interview
editor.epilogue@gmail.com Mubeen Shah
subscription@epilogue.in 22 Interview
Ram Sahai
Edited, Printed, Published and
Owned by Zafar Iqbal Choudhary.
23 Document
Indo-Pak Joint Statement
Published from : Ibadat House,
Madrasa Lane, Near Graveyard, 24 Making Borders Irrelevant

Bathindi Top, Jammu, J&K - 38 Poonch-Rawlakote

180012 and Printed at : DEE The Road Much Traveled, Less Visisted
DEE Reprographix, 3 Aikta
Ashram, New Rehari Jammu
(J&K)

Disputes, if any, subject to

jurisdiction of courts and
competitive tribunals in Jammu
only.

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1×
October 2008
MAKE YOUR CONNECTION TODAY

www.epilogue.in

JAMMU & KASHMIR

POLITICS
BUSINESS
VIEWS & NEWS
CULTURE
STRATEGIC AFFAIRS

Let Boundaries Blur
Zafar Choudhary
F Epilogue
or all those Kashmir is
anything to look at, trans-
LoC contacts have always
been a major suggestion to
ease tension not only between two
divided parts of troubled Jammu and
Kashmir but also between India and
Pakistan. For a layman, trading with
each other means investing in each
other –investing in business, investing
in trust, investing in confidence,
investing in cooperation and investing
in peace. When the an area of dispute
becomes area of mutual investment
in all the above sectors it can, of
course, change destiny of it land and
people. Therefore, the agreement of
trans-LoC trade between two parts of
Jammu and Kashmir comes as a
biggest confidence building measure
of all the initiatives taken by India
and Pakistan towards resolving
Kashmir and having cordial relations
with each other. Though the trade
across LoC begins in October as a
symbolic measure of building
confidence between both sides but
eventually it will be trade between
India and Pakistan and Kashmir will be
the bridge. After a big hearted
initiative of India and Pakistan, once
Jammu and Kashmir sets the trend,
India and Pakistan will learn from
here the basics of investing in each
other. They will have to change the
mindset. See, Pakistan is world's
largest importer of tea and India
largest producer. Still Pakistan does
P R O L O G U E
FROM THE EDITOR
not import tea from India. Similarly,
Pakistan is one of largest producer of
molasses and India one of biggest
consumers but there is no mutual
trade. Being partners in trade,
Pakistan and India can emerge as
stable economic powers and also
resolve their most contentious issue
of Kashmir which has been eating up
their economies to the roots. The
trans-LoC trade will go down in the
annals of history as the most practical
measure towards economic
integration of the region divided at
birth. While this calls for
celebrations, at the same time there
is need to look inwards. The trade ties
are breaking down between Kashmir
and Jammu. Trade was perhaps one
major area where these two regions
of the state enjoyed a level playing.
With political and social ties between
two regions already bruised, severing
of trade ties is fraught with dangerous
consequences. Onus is on all
stakeholders to save state from this
disaster. With a report from United
States Institute of Peace as cover
feature, our present issue looks at the
whole scope and future of trans-LoC
contacts towards blurring of borders.
Our most sincere thanks are due to
USIP and in particular Mr Kay Hechler
for endowing to Epilogue their latest
report 'Making Borders Irrelevant'.
Feedback :
Zafarchoudhary@epilogue.in
Epilogue Ø
3×
October 2008
because there is more to know
EPILOGUE aims at providing a
platform where a meaningful
exchange of ideas, opinion and
thoughts can take place among the
people and about the people of
Jammu & Kashmir. The attempt is to
research, investigate, communicate
and disseminate information, ideas
and alternatives for the resolution of
common problems facing the state
and society of Jammu & Kashmir and
in the context of their significance to
South Asia as a whole.
We welcome contributions from
academics, journalists, researchers,
economists and strategic thinkers.
We would also like to encourage
first-time writers with the only
requirements being a concern for and
the desire to understand the
prevailing issues and themes of life in
Jammu & Kashmir
Contributions may be investigative,
descriptive, analytical or theoretical.
They may be in the form of original
articles or in the form of a comment on
current events. All contributions have
to be neatly typed in double space and
may be sent to the address given
alongside or e-mailed to the editor.
While the editor accepts
responsibility for the selection of the
material published, individual
authors are responsible for the facts,
figures and views in their articles.

Mirror to state of affairs
No one can deny the fact that the state
failed to tackle the Land issue, Gautam
Navlakha's deep rooted research based
fact story is a mirror for the state
politics and immature policies of the
state and union to handle the sensitive
issue of Kashmir. He not only described
the background but also tries to depict
the further consequences of the policy
failure of the government in Kashmir. I
am really happy to experience such a
wonderful analytical story and he truly
deserves congratulations for his
wonderful piece of work with
EPILOGUE.
Anu Sharma,
Scholar, Jammu University
Keep it up
With a hope of continuity of EPILOGUE
to depict the socio-political scenario of
Jammu and Kashmir to the world, we
feel proud to be the reader of Jammu
and Kashmir's perhaps only such
Magazine available throughout the
country. Any how the last issue of the
magazine was fabulous and especially
the 'movie reviews' at the same time it is
really a matter of concern for us that
how a smaller issue got the potential of
a wildfire in the state.
Dr. Zeeshan Chouhan
Unani Medicines, Srinagar
M A I L B O X
LETTERS TO THE EDITOR
Mail your letters to editor@epilogue.in
Political duplicity
It is ridiculous when Jenab Shafi Uri
blames his political rivals and India
for mis-handling the situation in the
state during the Amarnath land
controversy, N.C has ruled the state
for a long time, they had even
shared the power at center with the
saffron brigade, but then they
never even tried to bring
transparency on the issue on the
conscious mind of Jammu region on
the discrimination. It would have
been better if his senior leaders had
also adopted a balanced approach
while parroting different slogans in
Jammu, Delhi and Kashmir.
Shehraza Malik,
Law Student, Pune
Press, not so free
The credibility of media was doubted
and there was an attempt to oppress the
freedom of press, EPILOGUE's
chronological views on the number of
incidence of attacks on the journalists
and cameramen clearly enlights on the
duplicity of the state on the name of so
called freedom of press. What could be
more shameful for a democracy when
your voice is thrashed with guns and
force ?
Imran ul Hasan,
District: Ramban
Epilogue Ø
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October 2008
Welcome initiative on Ladakh
The world knows a very little about
Ladakh and the knowledge and interest
of even the journalists mainly remained
focused on tourism in Ladakh, but with
EPILOGUE we are able to know and
explore Ladakh and its economy beyond
tourism. Really it is quite appreciable
that you provided us a glimpse of real
Ladakh beyond tourism. Prior to your
Story we could not even believe that
farming would have been the profession
of Ladakh people.
Suraj Parkash,
Bangalore
Obvious Divide
A small administrative order over the
land transfer gathered the momentum
and put the state on fire, there was an
obvious reaction form both the sides,
whereas in Jammu they came with
discrimination saga and in the valley
Hurriyat and other mainstream parties
also missed no chance to fuel the fire.
Its hurting but still the fact that the two
months agitation has divided the state,
like Russia and U.S.A during their cold
war period, the two regions of the state
have fallen into the vicious trap of
vested interests. The last issue of
EPILOGUE represented the balanced
views from both the regions and have
a p p re c i a b ly a d op te d a u n i q u e
approach.
Satyam Bhagat,
Rohini, New Delhi
 H E A R A N D H E A R
WHO SAID WHAT

Central Government should nationalize the road to the

Amarnath Yatra so that in future no attempt is made
to disturb the social harmony for political reasons
Rajnath Singh, National President, BJP

I believe that the Hurriyat has the right to say

We do not have ideological compatibility with
any party. It is easy to go for alliance in any
other state but not in J&K.
Arun Jaitely, Senior Leader BJP
that they represent the people, I don't think
that only those who participate in elections
have the right to claim representation of the
people.
Saif-ud-din Soz, Union Minister for Water Resources

Starting trade on Cross-LOC route is a non-issue

I don’t believe that independence for Kashmir for us. Our struggle is far right to self
is a feasible or a viable option and I stand by determination.
that.
Syed Ali Shah Geelani, Senior Separatist Leader
Omar Abdullah, President N.C.

Elections are essential to ensure a legitimate

representative status. The Hurriyat Conference should Trifurcation of Jammu and Kashmir is
contest elections so that the people may take them completely out of question. We are
seriously at home and aborad. committed to address alienation with all
sensitivity.
Bhim Singh, Supremo, JKNPP
Sonia Gandhi, President Congress Party

Addressing the public sentiments with open

mind is a challenge and gun could not be Kashmir remains the 'core issue' between
state's medium of expression in the current India and Pakistan and every Pakistan Ex-
scenario. Government has viewed it so. The Pakistani
position is well know.
Mufti Mohd. Sayeed, Former Chief Minister
Asif Ali Zardari, President, Pakistan

Epilogue Ø
5×
October 2008
 N E W S
J&K STORIES
ELECTIONS
International Audience, Domestic
Dissidence Delaying Assembly Polls
S
ome four months back when then Chief Secretary BR
Kundal resigned to join Ghulam Nabi Azad cabinet,
elections were seen happening anytime then. Ministers
were missing from their secretariat offices as all politicians
were fanned out to their electoral constituencies. Ruling
coalition partners Peoples Democratic Party and the
Congress were as usual, warring against each other take
credit of populist measures –many of them still waiting to be
announced. It was apparently with an eye on garnering more
seats in the Hindu majority Jammu region that Chief
Minister Ghulam Nabi Azad did a quick approval to
Amarnath shrine land allotment and the PDP of
Muftis opposed move playing up to its
Kashmir constituency. Four months down
the line, the mainstream political
landscape has been changed to so
worst that even talk of elections is
sounding ridiculous.
As per the legislative calendar, by
this time the poll season in Jammu
and Kashmir should have been at its
zenith. Post-Amarnath land row, the
mainstream politics has got such a
severe beating that not only the political
parties but also the Election Commission of
India is clueless about election timing. Term of
present Jammu and Kashmir and Legislative
Assembly (dissolved on July 10 after fall of Ghulam Nabi
Azad government) was to end on November 20 and a new
government should have been elected by that time. A little
over 50 days have left for that deadline but there is still no
movement on the poll front.
Almost all political parties, except BJP, clearly put their
foot down to the disturbed security scenario when the
Election Commission of India had its first consultation
meeting in New Delhi on September 8. With their wide
Valley base, Peoples Democratic Party and the National
Conference told election commission that situation in
Kashmir was not suitable for elections. The Congress, with a
poor presence in Valley and drastically shrunk base in
Jammu region, played it diplomatically. “We have left it to
the Election Commission to decide poll dates”, said Union
Minister and state Congress President Saif-ud-Din Soz. “We
Epilogue Ø
7×
October 2008
W R A P
are ready whenever Commission decides”.
BJP is the one party which wants elections held as soon as
possible. “If Kashmir is not ready for elections why should
Jammu and Ladakh regions wait for that”, says Arun Jaitly
party general secretary and incharge of J&K affairs. When
asked about the separatist movement in Kashmir which may
bring the poll participation down to negligible, Jaitly said,
“this is a wrong notion. More mainstream politics and
competitive elections will neutralize the separatist
constituency”.
In fact the BJP is desperate to reap the harvest of
recent agitation on Amarnath land row in
Jammu. This agitation saw strengthening
and rise of rightwing political parties in
at least four of the ten districts. The
Shri Amarnath Yatra Sangharsh Samiti
–which spearheaded agitation –has so
far no plans of contesting elections
and therefore the BJP expects a
cakewalk on dozen odd
constituencies if elections are held
immediately as the agitated
sentiments against Congress and
Kashmir based parties are still fresh.
The Election Commission after meeting
political parties had series of consultations
with security agencies, J&K state administration
and the Union Home Ministry. A final meeting of Election
Commission with Governor NN Vohra, who is keen to have an
elected government in place at the earliest, is still pending.
The UPA government is in a double whammy on the
elections. If elections are held now and the poll percentage
in Valley does not go beyond five percent this can be an
embarrassment for India internationally. India has always
defended the secessionist voices and the international
support thereof by its elections results.
Valley had polled 29 per cent in 2002 assembly elections
which definitely boosted India's image. In 2002 byelections
on three Valley constituencies in north Kashmir, the poll
percentage was as high as 70 per cent – far and far above
the national average. India had obviously wanted to see this
trend repeated in 2008 elections, and there were definite
chances for this, but the Amarnath land row has pushed
 N E W S W R A P
J&K STORIES

Valley back to the wall. DEVELOPMENT

To ease situation in Kashmir, which
literally back to early 1990s era, Plan Model Being Re-Structured
the UPA government and the state As ‘Discrimination’ Voices Get Shriller
Governor NN Vohra's administration
have recently took a slew of
firefighting measures to ease
sentiments and create a conducive
situation for elections. The idea
was to through the Srinagar-
Agriculture
JAMMU
5761
147.31
270.49
KASHMIR
104.5
253.17
380.29
FYP8
FYP9
FYP10
F ollowing
Amarnath
land row
agitation and
Muzaffarabad route open for Cross- 337.56 519.41 FYP11 unprecedented
LoC trade and to connect the Irrigation 91.14 136.64 FYP8 regional
Valley with Muslim dominated 112.79 210.05 FYP9 polarization
districts of Rajouri and Poonch via 267.76 446.72 FYP10 between Kashmir
Mughal Road before Eid so as to 282.54 365.35 FYP11
and Jammu the
address some amount of Roads & Buildings 114.2 247.22 FYP8 voices of
alienation. The Cross-LoC trade 29.38 403.67 FYP9 regional
though has been decided to 730.93 751.03 FYP10
1229.24 1229.24 FYP11 discrimination
commence on October 21 but a are getting
possible fair weather drive on the Health 123.92 135.34 FYP8
shriller than
Mughal Road is reported to have 226.07 274.45 FYP9
330.32 390.25 FYP10 ever. While this
been snowed in may be till early
510.81 819.22 FYP11 grouse has
next year when the snow melts.
Tourism 15.21 34.39 FYP8 remained
It is all a guess work about final predominant in
34.99 58.01 FYP9
timing of elections. While the 47.17 109.85 FYP10 Jammu for all
elections in present scenario are 36.29 83.09 FYP11 sixty years
fraught with the doubts of lacking
Sewerage 2.92 6.81 FYP8 –precisely since
legitimacy with a poor public 6.26 14.61 FYP9 the end of Dogra
participation, delaying the 30.61 71.42 FYP10 Maharaja's rule
exercise may still be a bad 11.54 35.67 FYP11
–of late harsher
advertisement for India at Drainage 20.37 45.53 FYP8 complaints from
international level. Sources say 27.84 64.96 FYP9 Kashmir have
that the Election Commission is 32.31 75.41 FYP10
likely to take a final call on started pouring
67.75 109.61 FYP11
schedule in first week of October. in. With both
Housing & Urban Dev 19.38 45.23 FYP8
regions
As per the revised electoral rolls, 39.87 93.02 FYP9
69.65 162.52 FYP10 complaining
Jammu and Kashmir now 64,81,000
27.94 518.88 FYP11 against each
voters listed for the 2008 assembly
elections. There were nearly 63 Power 516.75 775.12 FYP8 other the task
lakh registered voters when last 56.94 85.41 FYP9 has become
assembly elections were held in 1154 1731.43 FYP10 difficult for
2002. According to Election 3278.78 4918.17 FYP11 planners and
Department, in the forthcoming All figures in Rupees Crore, based on Five Year Plan Fundings researchers to
assembly elections 4.48 lakh fresh actually reach at
voters will be casting their votes an objective opinion. In this backdrop, the Governor NN Vohra has proposed a
while 3.68 lakh of them are the pragmatic step to lay the foundations for balanced funding as India's Thirteenth
new voters –attaining age of 18 Finance Commission has started working out the next Five Year Plan.
after last elections –who will be J&K's coalition government in its last year in office had constituted as State
casting first vote of their life. Finance Commission with an objective to regional imbalances in funding

Epilogue Ø
8×
October 2008
 N E W S W R A P
J&K STORIES

pattern and propose suggestions for future

ECONOMIC LOSSES
development funding so that each region gets its due
share. Vohra recently had a meeting with the Finance Agitation Reportedly Cost
Commission –its chairman Mehmood-ur-Rehman and
three members, one each drawn from Jammu, Kashmir
Economy Over Rs 30,000 Crores
and Ladakh regions.
The Governor observed that the recommendations on
the fiscal devolution to civic bodies and other
measures for strengthening the Local Self Governing
bodies could go a long way in decentralization of the
decision making process, a leading to qualitative
improvement in governance. Rehman apprised the
Governor about the Commission's visits and
interactions in each of the districts of the State except
two, which the Commission proposes to visit along with
other remote and backward areas across the State. He
said that the Commission had also extensively studied
various Public Sector Corporations across in the State.
The Commission was, in particular, looking into the
issues pertaining to corporate governance, with the
I t has not been heard anywhere in India, but Jammu and
Kashmir is on the way to set a precedence. Voluntary
shut downs as part of agitations is always considered as
voluntary and not forced; therefore government
compensation in such cases is something unheard of. The
objective of restructuring of these institutions of vital
Shri Amarnath Yatra Sangharsh Samiti (SAYSS), which
public importance. spearheaded two-month long agitation in Jammu on
Rehman said that the Commission was mapping the Amarnath shrine land row, put a specific condition before
regions and sub-regions with reference to well the government for calling off agitation. Besides restoration
accepted development indicators for identifying the of the controversial piece of 800 kanals of forest land to the
backlog of development in backward areas and suggest shrine board, the Samiti put 12 other conditions before the
strategies for short-term and long-term correction. He government which included compensation to all sectors of
said that the Commission was also identifying measures economy which suffered losses during agitation. Cornered at
to bring about a paradigm shift in the approach for all fronts, the government was quick to agree. Though the
inter-se allocation of resources by treating each region demand was specific for Jammu region alone but in its
and sub-region within the region as a targeted balancing act, the Government decided to extend this
economic unit. The Chairman said that the Commission benefit to Kashmir Valley's units of economy as well. The
was also reviewing the state of finances and suggesting Governor's administration has now constituted a Working
restructuring of the public finances, restoring Group under the Chief Secretary to examine cases of losses
budgetary balance, achieving macro-economic stability and work out the compensation package. The Working Group
and debt reduction. He said that the Commission would has to complete the exercise in two months (before October
end). The cash starved J&K Government will be forwarding
be suggesting measures needed to augment the
the case to Central Government for financial assistance.
resources of the State Government, particularly to
supplement resources of Halqa Panchayats, Though an exact and authentic tabulation of losses is yet to
Municipalities and Municipal Corporations. Meanwhile, be made, but representative bodies of trade, commerce and
industries in Jammu have said that losses run beyond Rs
a senior BJP leader, Prof Hari Om seems to have put in
10,000 Crores. Ram Sahai, President of Chamber of
a lot of effort in pointing out that “Kashmiri political
Commerce and Industries have said that the losses mount to
elite” alone is not be blamed for the alleged regional
over Rs 9600 Crores. Some other sections not covered by the
discrimination against Jammu is New Delhi is an “equal
CCI have also been reporting losses in hundreds of crores of
culprit”. Hari Om has complied the sector-wise funding rupees. The Kashmir Chamber of Commerce and Industry has
details of last four Five Year Plans which clearly show a reported losses to the tune of Rs 25,000 Crores. Now it has
lopsided funding, if the figures are genuine as Hari Om to be seen as how government works out this more than Rs
claims. (See table) 30,000 Crore compensation package.

Epilogue Ø
9×
October 2008
 N E W S W R A P
J&K STORIES

MILITANCY
Gun Relatively Silent In Valley,
Jammu Returns To Late 1990’s era

K ashmir Valley has definitely returned to its early-1990s era of separatist upsurge but
there is one remarkable difference –the gun discourse is missing. However, traveling
south of Pir Panchal, in Jammu region the scene is being reset to the mid and late
1990s with a visible presence of the gun.
Ever since Kashmir Valley re-erupted June this year with the dominant Azadi discourse, what
has lend credence to the voices and added to the worries of New Delhi is the fact that all is
not being done on the gun point. In early years of 1990s when the slogan shouting Valley
residents stayed more on streets than their houses, the popular perception was all that
being done under the shadow of gun. That may have been largely those times, but this time
around gun has been carefully kept away from the scene to send a message of popular
uprising and not the militancy.
Surprisingly, militancy is on its revision course in Jammu province where sporadic incidents
of violence and infiltration are on an alarming rise. Intelligence reports have that some 800
ultras are waiting on the other side of International Border and Line of Control along Jammu
region to cross over at an opportune time. Such “opportune times” are now happening much
frequently and that too under the fire cover provided by Pakistani Rangers or Army. While
the Winter Capital City is reeling under a constant terror fear since ultras sneaked in on
August 25 and took a family hostage before being killed in a 19-hour long gun battle, the fear

POWER
450 MW Baglihar Project Ready To Change J&K’s Destiny

A
fter surviving
prolonged
diplomatic rows,
geographical hurdles and
bureaucratic red-tapism,
J&K's most ambitious
power project, so far,
the 450 MW Baglihar
hydro-electric power
project is all set for
commercial generation
by middle of October.
Test run on three
turbines of 150 MW has
been performed
successfully.
On Baglihar, India had
fought a long row with
Pakistan under the
Indus Water Treaty. It

Epilogue Ø
10 ×
October 2008
 N E W S W R A P
J&K STORIES

factor is also looming large in the countryside and the border melting hot with activity.
Having enjoyed few years of security and peace in their home and hearths since November 2003
ceasefire, the border residents along five districts in Jammu region are again a worried lot. Since
November 2003 ceasefire agreement between India and Pakistan, life had limped back to normalcy
along the International Border and the Line of Control and people had resumed their usual farm activity
which was on doldrums after the Kargil conflict of 1999. However, since past few months a deep sense of
insecurity is prevailing among the residents of border areas as cases of firing and infiltration have picked
up drastically and some times getting more frequent than the pre-ceasefire times.
Reports from across the region have been pouring in on the presence of militants. It was around two to
three months back when people in the border districts of Rajouri and Poonch started reporting huge
presence of militants in the interiors and now a similar situation is being reported from the areas along
IB, in Jammu, Samba and Kathua districts.
Between April and August this year, there have been at least 29 instances when Pakistani troops violated
the truce with India and fired at Indian posts along the Line of Control (LoC) to provide covering fire to
militants. One incident was reported in April, two in May and seven in June. The figure rose to 10 in July,
while at least nine violations took place in August. About 150 intruders had managed to cross over to the
Indian side since January, sources said.
'The recent firing along the LoC is mainly an attempt of infiltration by militants and the armed forces are
keeping a vigil. By and large, we have been able to defeat the attempts of militants. The coming few
months are crucial and we have to be more alert and the armed forces have been asked to be more
vigilant,' Defence Minister AK Antony said on September 5 in New Delhi.
Infiltration into Jammu and Kashmir normally begins at the end of March when the snows in the
Himalayan ranges melt and the passes become accessible. Between March and July, the Indian Army
says, there have been over 130 infiltration bids, of which about 20 succeeded.

was in February last year that a World Bank commissioned
expert panel headed by Raymond Liffete cleared the
project of all objection with some suggestions of slight
design change including reduction in height of the dam to
143 meters from the then height of 145 meters . On July
31 this year, a three-member team from Pakistan led by
Central Water Commission (Indus Water Treaty)
Commissioner Syed Jamait Ali Shah had visited Baglihar
project and had given a clean chit to the project in its
report, after complete inspections.
The project was started in 1999 and is almost complete
after much delay due to dispute raised by Pakistan and
changes undertaken in design. The project, constructed by
Jaypee Indistrues, was initially slated to be completed at a
cost of Rs 4000 crores by June 2006 but due to
unprecedented floods in mid 2005, the project received a
severe set back, as its tunnels got severely damaged. The
natural calamity resulted in time and cost over run in the
project with the project cost rising from Rs 4000 crores to
Rs 5200 crores.
This is first major state-owned power project in Jammu and
Kashmir and its commissioning is going to be a major
milestone in economic development of the state. All other
major functional projects like Dul Hasti are in the Center
sector owned and operated by the National Hydroelectric
Power Corporation in which Jammu and Kashmir gets only 12
per cent royalty share of the total production.
There are more than 25 power projects –both in State and
Central sectors –harnessing a potential of around 1500 MWs.
Some of the projects are operational while others are into
various stages of completion.
The peak hour electricity requirement in Jammu and
Kashmir around 2040 MWs but the total production in
state sector has so far been only 311 MWs. After resorting
to scheduled power curtailments, the minimum supply is
managed by around 950 MWs –procured from royalty out of
Central Sector projects, Power Trading Corporation of
India and other sources. This supply too falls to around
650 MWs in peak summers as well as in peak winters due
to drop in river discharge and transmission and
distribution losses.
With generation of 450 MWs of power at Baglihar power
project the total electricity production in the State Sector
will go upwards 800 MWs. This will not only push the
economic growth of state but will also bring down the huge
expenditure on electricity procurement.

Epilogue Ø
11 ×
October 2008
 N E W S
J&K STORIES
RAILWAYS
Suspense, elusion over Kashmir’s
‘Rail-Line Integration’ With India
A
n aesthetic and comfort marvel of Indian Railways,
the Kashmir Valley is all set to have one of the most
beautiful and comfortable trains of country chugging
between its northern most part –Baramulla and the southern
most township of Qazigund. However, the dream of
integrating Kashmir with rest of India by train is getting
elusive by the day even as authorities are making a discreet
silence on imminent delay on the project.
Rail link within and to Kashmir Valley has two phases –one
which connects Valley within and the other connects Valley
with rest of country. Valley's internal rail line is a 199
Kilometer track between Qazigund and Baramulla. The
Upon its commissioning the Qazigund-Baramulla
track would would generate direct employment for
3900 persons in the Valley, in addition to indirect
employment. The Railways is also processing 400
cases for providing employment to one person in
each of the land loser families, those which have
given to the Railways more than 75 per cent of
their holdings, in Kashmir. Appointment letters
have been issued to 120 candidates so far, who are
undergoing training in different parts of the
country.
construction work on this section having 800 bridges is 95 per
cent complete and Rs 2200 Crores out of the estimated prost
cost of Rs 2400 Crores have already been spent. An air-
conditioned, eight coach diesel multiple unit with push back
seats will chug on this track which has 15 stations on the way
with the central Srinagar-Nowgam station being
architecturally and aesthetically, the most beautiful station
in the Indian Railways.
However, the line linking Kashmir with rest of the country –the
148 kilometer Katra-Qazigund track –is appearing to be an
elusive project yet. The special feature of this section is that
80 per cent of the 148 kilometer track will be covered by
tunnels and 12 per cent by bridges, thus leaving only 8 per cent
open. This section was supposed to have world's third highest
railway bridge but recent reports of change in alignment have
Epilogue Ø
12 ×
October 2008
W R A P
The railway project in the State comprises three
sections- Udhampur-Katra, Katra-Qazigund and
Qazigund-Baramulla, taken up at a cumulative
cost of Rs 11000 crores. For the current financial
year, Rs 1000 crores have been earmarked.
sparked off doubts which the authorities are yet to clarify.
As a part of Jammu-Udhampur-Baramulla rail link the
world's third highest railway bridge was coming up over River
Chenab in village Kauri in the newly created Reasi district.
After spending more than Rs 100 Crores and risking the
claims of an international construction consortium running
beyond Rs 200 Crores, the government is reported to have
cancelled the project after belatedly learning about its
unfeasibility.
After global tendering the Konkan Railways had in 2004
allotted the construction work of this project to Ultra-
Afcons-VSL, an international construction consortium. The
bridge on river Chenab was supposed to have a total length
of 1320 metres, the single longest arch span of 480 metres
and the height from the bed level to the rail level of 359
metres –highest anywhere in the world.
At an estimated cost of Rs 500 Crores, the Kauri bridge was
to be completed in a period of 30 months which, however,
had elapsed early last year. The construction work on the
bridge had picked up only earlier this year but now the
report has come about cancellation of the project.
In a letter dated September 4, the railway board announced
"all existing contracts" with Konkan Railway Corporation
Limited (KRCL) for a 34-km stretch of the railway link
between Jammu and Kashmir, which includes the
construction of the Chenab mega arch bridge, have been
Railways were constructing 270 kilometers of access
roads, at the cost of the Railways, to carry
machinery and equipment to the Project sites. After
the completion of the Project, these roads would
connect 60 villages and will be of immense use for
the locals of the concerned areas.
 N E W S W R A P
J&K STORIES

Governor Vohra on Kashmir train ride

The construction work on this section having 800 bridges is 95 per cent complete and Rs 2200 Crores out
of the estimated prost cost of Rs 2400 Crores have already been spent. An air-conditioned, eight coach diesel
multiple unit with push back seats will chug on this track which has 15 stations on the way with the
central Srinagar-Nowgam station being architecturally and aesthetically, the most beautiful station in the
Indian Railways.
The special feature of Katra-Qazigund section is that 80 per cent of the 148 kilometer track will be covered
by tunnels and 12 per cent by bridges, thus leaving only 8 per cent open.

"short closed" (meaning, terminated before completion of
work).?
As a corollary, the board's decision puts a stop to the sub-
contract signed by KRCL in 2004 with the international
consortium, Ultra-Afcons-VSL, to design and build the
Chenab bridge within 30 months. Though the stipulated
period for the execution of the project lapsed last year, the
consortium is yet to build even the foundation in the
mountain slope on either side of the river as Northern
Railways, in view of the treacherous geological conditions,
could not clear any of its plans for the bridge.?
In a tacit reference to the claims of Rs 300 crore submitted
by the consortium for the manpower and machinery idling at
the site, the board said, "A proper record of material,
unfinished work abandoned at the site shall be kept for
examining legitimate claims."?
The decision to scrap the bridge was taken by the board's
member (engineering) S K Vij as a sequel to an order passed
by him on July 14 suspending all works on the existing
alignment of the entire 125 km track between Katra and
Banihal skirting the mountains at altitudes ranging from 800
to 1,700 metres.
This has sparked off doubts as authorities are not officially
clarifying the proposed change in alignment. The only word
which we have about the impact of this design change is
from a meeting which J&K Governor NN Vohra had with the
official of Northern Railways in New Delhi on September 16.
Briefing about the meeting, an official spokesman of J&K
government said that despite change in alignment on
Jammu side of the Udhampur-Katra-Qazigund rail line, the
Northern Railway has assured Governor NN Vohra that the
completion of the railway link will not be delayed beyond
the stipulated time.
“Allaying the apprehensions about the change in the
alignment on the Jammu side of the track, the General
Manager assured that the work on this track will be speeded
up to facilitate the early completion of the Project”, said
the spokesman.

Epilogue Ø
13 ×
October 2008

INFRASTRUCTURE
Major Projects
Surpassing
Deadlines By Years
W
ith majority of the
centrally funded
a m b i t i o u s
infrastructure projects in J&K
running appallingly behind
schedule, a Parliamentary Panel
has suggested a funding
mechanism for this state where
money is not considered lapsed
at the end of financial year.
Currently, most of the funds
earmarked for the states are
getting lapsed as harsh climatic
conditions don't allow works at a
steady pace. The panel also
expressed concern that the
Planning Commission and the
Finance Ministry reduces the plan
outlay for Jammu Kashmir
projects due to non-completion
of works.
Of the works running behind
schedule are some of the major
projects funded under Prime
Minister's Special Infrastructure
Package. Under the
reconstruction plan made in
2004, seven road projects were
taken up. None of it has met the
deadline. Construction of Mughal
road between Pulwama district
in Kashmir valley and Poonch and
Rajouri of Jammu was scheduled
to be over in March 2007 but now
a new deadline of April 2010 has
been set. Out of the Rs 639.85
crore of fund alloted to the
project, only Rs 162.35 crore had
been spent till this April.
Similarly, widening of Domel-
Katra road by Border Road
Organization (BRO) has missed
the deadline of March 2007 and
out of the total fund allotment,
only 61per cent has been spent.
N E W S W R A P
J&K STORIES
SURVEY REPORT
J&K Lok Sabha Constituencies
Doing Better Than Many In India
J
ammu and Kashmir is though not able to compete most of other states in important
parameters of development but its Lok Sabha constituencies are doing quite good.
India Today's latest survey of best and worst constituencies of India has put J&K's Lok
Sabha segments in a class of their own. As the trend has it, the constituencies with large
urban base have faired well than those spread over hilly and rural areas. What makes the
state proud is that in an indexing of 543 Lok Sabha constituencies, its best is placed at
rank 208 and worst at 367 while Bihar makes an entry at 330 and Uttar Pradesh has 29 of
the 100 worst constituencies.
The Srinagar-Badgam Lok Sabha presently represented by National Conference president
Omar Abdullah segment has been placed at 208 rank in terms of performance on socio-
economic sector and at 279th in terms of infrastructure development. Omar's arch rival
and another young leader Mehbooba Mufti constituency –Anantnag-Pulwama -finishes
poor at the second last rank among six constituencies in the state.
Congress MP Chowdhary Lal Singh's constituency of Kathua-Udhampur-Doda has been
Constituency MP Socio-Eco Index Infrastructure
Srinagar-Budgam Omar Abdullah 208 279
Jammu-Kashmi Madan Lal 260 247
Ladakh Thupstan Chewang 264 184
Baramulla-Kupwara A.R. Shaheen 277 205
Anantnag-Pulwama Mehbooba Mufti 296 308
Udhampur-Doda Lal Singh 363 357
placed at the poor last rank in the state but he does not have to worry about it. After
all, Lal Singh's performance, though poor as per the survey finding, is at least 50 points
better than that of Congress president Sonia Gandhi's Rae Bariely constituency and
General Secretary Rahul Gandhi's Amethi constituency.
“Nothing quite compares with the eloquence of numbers. By definition India is a mosaic
of cultures, geographies and economies. And nothing symbolises this better than the
rankings of the Lok Sabha constituencies”, says the India Today magazine's survey of
India's best and worst constituencies.
The Jammu-Rajouri-Poonch Lok Sabha constituency represented by Madan Lal of
Congress has ranked at number in the state. Out of all LS seats in India, Madan's
constituency is at rank 260 in terms of socio-economic development and 247 in terms of
infrastructure access. The Congress MP has reason to feel happy and elated.
“I have put in all my efforts to repay to my electors the faith they reposed in me”, says
Madan. Among his major achievements, he counts over half a dozen colleges and double
laning of Jalandhar-Jammu rail line.
Ladakh constituency represented by Thupstan Chhewang of Ladakh Union Territory Front
is ranked at number three in the state and at all India level it is at rank 264 in terms of
socio-economic development and 184 in terms of access to infrastructure. The
Baramulla-Kupwara constituency represented by Abdul Rashid Shaheen of National
Conference is at 277 rank in terms of socio-economic development and 205 in access to
Epilogue Ø
14 ×
October 2008
 N E W S
J&K STORIES
infrastructure.
Peoples Democratic Party president Mehbooba Mufti's
constituency of Anantnag-Pulwama is the second worst
performer at 296 rank in terms of socio-economic
development and 308 in access to infrastructure.
Chowdhary Lal Singh of Congress doubts the indexing
methodology as his constituency finishes last -363 in terms
of socio-economic development and 357 in terms of
infrastructure access. Lal Singh has a reason to protest.
The indexing is not the basis of performance an individual
MP may have registered during the present term. The
parameters also include what he inherited from his
predecessors.
“I have got more than 400 projects completed so far in the
areas of my constituency and am sure of meeting the 800
target before end of my term”, Lal Singh said. He further
said, “in Omar Abdullah's constituency only 90 projects
have been taken so far.
“Uttar Pradesh, which sends 80 MPs to Parliament and has
been home to eight prime ministers, makes an entry at
number 212 with Kanpur, thanks to the dividend of legacy
the commercial city delivers”, says the India Today survey.
“The real shocker is that Bihar boasts of 32 of the worst 100
constituencies while Uttar Pradesh is home to 29 to the
bottom of the pile. Curiously the listing reads virtually like
the first list of 100 worst districts classified by the Patel
Committee in 1964. It is as if time has stood still”.
Phulpur and Allahabad, represented by Jawaharlal Nehru,
who was prime minister for 17 years, rank 409 out of 543 on
the socioeconomic index.
Lucknow, which elected Atal Bihari Vajpayee, is placed at
269. Ballia, which elected Chandra Shekhar (and now his
son), ranks 388 and Chaudhary Charan Singh's Baghpat is
362.
Amethi which has elected members of the Gandhi family-
Sanjay Gandhi, Rajiv Gandhi (twice), Sonia Gandhi and
now Rahul Gandhi-five times out of 10 polls.
It ranks 484 on the socio-economic index and 475 on the
infrastructure ranking.
Nehru-Gandhi home turf of Amethi, presently represented
by Rahul Gandhi ranks at 484 while Rae Bareily
constituency is at 507 rank in terms of socio-economic
index.
The survey report concludes, “unless public
representatives realise that the huge monster called
government is made to deliver, they will be haunted by
anti-incumbency and their voters by poor governance.
These ratings simply reflect the distance between the
need of the voting class and a slothful system”.
Epilogue Ø
15 ×
October 2008
W R A P
INDUSTRIAL INVESTMENT
Loosing Ground To
Neighbouring Himachal Pradesh
F
or past few years, the Central and State government have
laying huge thrust on attracting investment in Jammu and
Kashmir. This included a multi-pronged strategy mainly
focusing on positive images building, allaying fears of militancy,
creating industry infrastructure and easing the land acquisition
norms. However, nothing seems to have worked well as investors
are not keen. Many have run away after swindling huge subsidies
and concessions while others are not enthusiastic in making
investments. In the recent 'State of States' survey report of
India Today, Jammu and Kashmir has emerged at poor 16th rank.
While there is no remarkable achievement on any parameter of
growth, Jammu and Kashmir appears to have suffered a massive
damage to its projected investment friendly environment.
Among 20 big states in country Jammu and Kashmir ranks at 16 in
attracting investors. What is more worrying is the fact that this
ranking has been on a constant decline for last four years.
At least two Chief Ministers –Mufti Mohammad Sayeed and his
successor Ghulam Nabi Azad –always claimed that they
mobilized huge investment for the state. However, a credible
survey points to the contrary. The survey says that Jammu and
Kashmir ranked at number nine in terms of its investment
friendly environment in 2004 which declined to number 10 in
2005, number 12 in 2006, number 14 in 2007 and number 16 in
2008. This clearly points out that India's industry barons are
least interested in investing in Jammu and Kashmir.
This had already been pointed by Prime Minister's Task Force on
Jammu and Kashmir's Economic Reconstruction which
submitted its report in December 2006. The Task Force headed
by former Reserve Bank of India Governor R Rangarajan had said
that besides unreliable security environment, the cumbersome
land acquiring process and complex taxation regime keeps the
investors away from Jammu and Kashmir.
Himachal Pradesh, though a hilly state almost like Jammu and
Kashmir, has emerged as number one state in the country in
terms of attracting investment. This first rank in attracting
investment had earlier been held by Gujarat consecutively for
last three years.
The latest “State of the States Survey” conducted by country's
leading current affairs magazine has put Jammu and Kashmir at
eleventh rank among the 20 big states of the country. Punjab
still maintains its Numero Uno position in the list while Tamil
Nadu has gone up to number two and Himachal Pradesh is at
number three. As usual Bihar is at the last rank.
India Today's annual “State of the States” survey, as it is well
known, is considered not less than the reports of Planning
 N E W S W R A P
J&K STORIES

Commission. The survey conducted by leading Economists Bibek enjoyed fourth rank in primary health sector in 2004 but declined to
Debroy and Laveesh Bhandari examines three categories –Big number but it declined to number seven in 2006 and 2007.
States, Small States and Union Territories. There are 20 States in Remarkable improvement has also been noticed in primary
the category of Bog States and Jammu
and Kashmir comes at eleventh rank. Jammu & Kashmir 2008 2007 2006 2005 2004
Jammu and Kashmir is maintaining this
" ! Overall Ranking 11 11 11 10 10
eleventh rank, well below halfway,
" ! Agriculture 16 16 15 15 15
consecutively for last two years though
its performance has declined in many # Primary Health 04 07 07 05 04
crucial sectors of economic growth and $ Investment Environment 16 14 12 10 09
general environment. In the same " ! Primary Education 08 08 10 08 07
survey, J&K ranked at tenth place in # Infrastructure 10 11 11 08 10
2005 and 2006 which declined to # Macro Economy 06 07 06 07 07
eleven in 2007. Agriculture is regarded " ! Consumer Markets 08 08 08 08 07
as backbone of Jammu and Kashmir's
$ Law & Order 16 15 17 17 12
economy but there is no remarkable
Excerpted from India Today Survey
growth in this sector. For straight
second year, the state is at 16th rank
among 20 states. Position was slightly better between 2004 and education where Jammu and Kashmir once stood at number
2006 when state ranked at number 15. This year's survey has put seven in 2004 and declined to eight in 2005, number 10 in 2006
Madhya Pradesh at number one and Punjab at number two. The and number eight in 2007. This year again state has been ranked
worst performing state in Agriculture sector is Gujarat. at number eight. There is also a decline for the worst in law and
order sector. In this sector, the state has registered a decline of
The primary health sector, however, appears to be only hope for
one rank from 15 to 16. Between 2004 and 2004, J&K ranked
image of Jammu and Kashmir. The state has ranked at number four
continuously at number 17 when it improved to 15 in 2007. This
among 20 states while Tamil Nadu is the best and Bihar still remains
year there is a decline by one point.
the worst. It may be mentioned here that Jammu and Kashmir

BUSINESS & ECONOMY

State Gets Steel Plant, Rs One Billion
More Investment On The Way

I
n a major boost to state's economy and industrial growth, Kashmir Valley has got its first steel plant. Union Steel Minister Ram
Vilas Paswan on September 22 laid the foundation of the first steel-processing plant in the industry-starved Kashmir Valley
which will give employment to around 4,500 people. The plant in Lassipora industrial growth centre in south Kashmir Pulwama
district will have an annual capacity of 160,000 tonnes and will become operational in 2010. Paswan said the capacity of the steel-
processing plant would be expanded after it becomes operational in January 2010.
Complimenting the central government and the union steel ministry for setting up the unit in the valley, Governor N.N. Vohra said
the plant would help to meet the steel demand of the valley besides assuring employment to a good number of people.
Paswan announced that the initial cost of Rs.900 million of the upcoming unit would be enhanced to Rs.1.5 billion to ensure full-
fledged facilities in the unit.
Earlier on September 8, the government's Apex Clearance Committee (APCC) for industrial investments cleared 23 industrial
projects in medium and large sectors with an estimated investment of Rs One Billion which also included the Lassipora steel plant.
Among others Shri Cements projects was also approved with an investment of Rs 164 crore. The project will have a potential for
creation of many ancillary units.
The other projects cleared are for manufacturing of high precision auto components, terri-towels, cement, hi-tech batteries,
LT/HT wire cables, steel products, paints, DG sheets, electric motors and steel pipes etc. The total investment to be mobilized on
setting up of the 23 projects cleared by the committee will be to the tune of Rs 1002 crore and direct employment to be created in
these units will be about 5500 persons.
The Chief Secretary directed for proper zoning of new industrial estates keeping in view various industrial activities, pollution
norms and other related factors so that requisite pollution control measures like setting up of Common Effluent Treatment Plants
could be designed and set up in the states.

Epilogue Ø
16 ×
October 2008
 I N F O C U S
LOC TRADE

Beginning Of A New Chapter

Zafar Choudhary

More than 61 years since the last truck load of goods moved on either side of Kashmir Valley's main trade
highway to the world, a new is era to set to begin in 2008 –an historical epoch indeed. Nearly three weeks after
Pakistan's new President Asif Ali Zardari promised India some good news (immediately after his swearing in), the
trans-LoC trade between two parts of Jammu and Kashmir has been agreed upon. Trucks will roll down on 130
kilometer long Srinagar-Muzaffarabad road on October 21 and on 47 kilometer long Poonch-Rawalakote road on
October 28. Seen in the context of Indo-Pak peace process, the trans-LoC trade can well be described as the
Biggest Confidence Building Measure so far.

T
here was an overwhelming
response in Jammu and
Kashmir on September 25,
barring few voices of obvious
reservation, when Prime Minister Dr
Manmohan Singh and President Zardari
made announcement of trans-LoC trade
from New York where both leaders were
visiting to attend 63rd United Nations
General Assembly session. Congress,
Peoples Democratic Party, National
Conference, CPI(M) and a wide
majority of separatists welcomed the
move and most of them described this
as realization of urges and aspirations
of the people of Kashmir. Hardliner
Syed Ali Shah Geelani's was the lone
voice to underplay the move.
“Opening for trade the routes which
already have restricted movement for
people is a non-issue for us…we are
fighting for a larger cause”, said
Geelani. In Jammu, the BJP saw trade
agreement as an act of treason. “1994
Parliament resolution holds Pakistan
occupied Kashmir as a part of
India…this agreement (on trans-LoC
trade) amounts to giving up claim on
our territory and accepting LoC as
International Border”, said BJP's
Jammu unit president Ashok Khajuria.
Almost all arrangements for trade on
both routes have been put in place. On
September 6, a team of Union Ministries
of Finance, External Affairs and Home
along with top officers of J&K
government visited the LoC crossing
point at Kaman and custom station at
Salamabad in Uri district to review
preparations. Work on roads, buildings
and other infrastructure facility was by
that time 95 per cent complete.
However, there is slow pace of work and
lesser enthusiasm on the Poonch-
Rawalakote trade link. Neither full
facilities have come up there nor is
there much awareness about what is
going to happen. Since the Srinagar-
Muzaffarabad link earns a lot of
publicity and the Valley being major
producer of commodities to be traded,
the level of involvement in Kashmir is
far higher than anywhere else in the
state. Poonch does not have any well
organized trade lobby and the Chamber
of Commerce and Industry in Jammu as
well as their Srinagar counterparts are
not seen taking any interest in Poonch-
Rawalakote route. However, it is
interesting to note that this route,
which was opened to passengers in
2006, is easiest and closet link between
63 per cent of the divided families on
both sides of Jammu and Kashmir.
Traders in Poonch and its adjoining
district of Rajouri are grasping for a
minimum knowledge about their stake
in the whole affair.
Trade between two divided parts of
Jammu and Kashmir has a different
meaning for different people. For
peaceniks it is an initiative which
enhances the people-to-people
contacts between both sides, brings
down the walls of mistrust, ensures a
greater level of cooperation and
eventually strengthens the urge for
peace. For traders, particularly on this
side of divide, it is a biggest opportunity
of economic growth and reaching to the
international markets. For Kashmiri's it
is an end to the perceived psychological
suffocation as for them Jawahar tunnel
has been only opening to the world since
division of state. In a larger perspective
the trans-LoC trade eventually emerges
as a move of economic integration
between India and Pakistan with Jammu
and Kashmir as a bridge. Being a
traditional bone of contention between
two nuclear armed neighours, Kashmir
becoming a bridge of cooperation can

Epilogue Ø
17 ×
October 2008
 I N F O C U S
LOC TRADE

ultimately pay way

for resolution of issue It’s Beyond CBM. Kashmir Always
which has been Needed An Alternate Trade Route
hanging fire for 60
years. Interview
Mubeen Shah, President,
Huge potential Kashmir Chamber of Commerce and Industries

E
The initial list of ver since the talk of trans-LoC trade began few years back this has been
described as mother of all Confidence Buildings Measures. Now trucks are all set
commodities to be
to move across LoC. How do you look at the situation?
exchanged between
both parts of Jammu
and Kashmir appears Trans-LoC trade was most important thing to happen to Kashmir and we are happy that this
more symbolic in has been agreed upon. But I don't think this need to be linked with the Confidence Building
nature but in next Measures. Now this is a reality and necessity and not just symbolism that we should have
couple of years these trade relations with Pakistan administered Kashmir and beyond.
trade links are set to
change economic Could you please explain this?
profile of the region.
Kashmir's apple See there are two major factors for which Kashmir should have trade ties
industry alone is with Pakistan administered Kashmir. One is natural and permanent and
worth Rs 2500 Crores other is recent creation of communal forces. Kashmir has only surface
and with a little boost link with world (Jammu-Srinagar National Highway) which is not fully
dependable due to weather vagaries. The highway remains closed for
it can touch Rs 5000
weeks together due to snowfall and landslides resulting into severe
Crore mark in next shortage of commodities in the Valley, particularly during winter months
few years. “Right now and rainy season. Therefore, an alternate trade route is the necessity to
our apples are worth maintain the basic minimum supply lines.
Rs 2500 Crore but if
proper technology is Another reason for alternate trade route, preferably linking Pakistan
applied we can administered Kashmir was felt strongly when some communal forces in
produce five times Jammu forced economic blockade of Valley to the extent that we even ran short of baby milk
higher than this powders and life saving drugs. After having faced such hostility now we can't depend on the
figure –Rs 12500 traditional trade route. You never know how many times they force economic blockade of
Kashmir.
Crores in next few
But these charges of economic blockade have been severely denied in Jammu. Moreover
years”, says Shakeel
during agitations, shutdowns and curfews supplies normally get affected.
Qalander, President
Federation Chamber
If there was no economic blockade we were not the fools to lead a march to Muzaffarabad.
of Industries, Our fruits and farm produce worth crores of rupees were allowed to rot in the mandis. People
Kashmir. “It is all in several areas did not have anything to eat for several days. For weeks Valley ran empty of
about efficient even most basic and essential commodities. Life saving drugs had to be procured directly
logistics”, says Dr from New Delhi by air as truckers were being attacked on the National Highway. Come here
Mubeen Shah, the and meet the truckers who survived lethal attacks of communal hooligans. If there was no
President of Kashmir economic blockade then why the government had to hand over the National Highway to Army
to make some movement of trucks to Kashmir. We have been deeply hurt particularly by the
C h a m b e r o f
action of those people who had business dealing with us.
Commerce and
Industry. With the
Now since the situation in Jammu has ebbed, is there full resumption of economic

Epilogue Ø
18 ×
October 2008

supplies and also the restoration of
business dealings with traders in
Jammu?
No. We are no more interested in
dealing with Jammu based
traders…they have betrayed our trust.
In fact we have decided to resume the
trade patterns of pre-1990s.
What is this pre-1990 trade pattern?
Before eruption of disturbance in
Kashmir in 1990 we had direct trade
ties with producers, suppliers and
wholesalers in different parts of
country, particularly Amritsar,
Ludhiana and New Delhi. They had
their C&F (Clearance and Forwarding)
offices in Srinagar which were shut
down by the onset of disturbance. We
have requested them to revive that
system. Meanwhile, we have started
procurements from different parts of
country bypassing Jammu. This has
been made clear to the traders in
Jammu. And I must make this clear
here that this is not an individual
decision. This is a decision of the
people of entire Kashmir Valley who
have refused to pick up commodities
supplied from Jammu.
Why you people protested allotment
of land to Amarnath shrine? Afterall
that was a turning point in widening
of gulf between Kashmir and Jammu.
I am sorry to say but the media has a
poor knowledge of this whole issue. All
newspapers and channels have sought
to link the controversy on several
patterns ranging from secessionism to
communalism. You people speak to
separatist and mainstream leaders and
the religious extremist. And the
politicians base their opinions on your
reportage which lack depth. Why no
one has bothered to address the issue
of ecology and economy. I have high
I N F O C U S
LOC TRADE
hopes and expectations that Epilogue
does justice to the issue.
First of all the resistance to the land
allotment was on the basis of
ecological dangers. The land around
Amarnath shrine is home to glaciers.
Increased human activity there would
have a direct bearing on our two rivers
–Jehlum and Lidder. Long term
dangerous effects are not only in
Kashmir but across the country as the
rivers are sustained by glaciers. We
had opposed construction of structures
which was given a communal rebuttal
by the Shrine Board authorities.
Second most important aspect is of
economy. You have two shrine boards in
Jammu and Kashmir –Mata Vaishno Devi
Shrine Board and Shri Amarnath Shrine
Board –both headed by the Governor.
The management of Shrine Boards has
different yard sticks for both
pilgrimages. There are three essential
facilities required to be offered to the
pilgrims –food, accommodation and
transport. In case of the Vaishno Devi
pilgrimage (in Jammu) the Shrine Board
has left it to the local businessmen to
offer all these three facilities to the
pilgrims. However, in case of Amarnath
pilgrimage (in Kashmir) the Shrine Board
wants to handle everything itself.
Protesters in Jammu demanded full
management of Amarnath pilgrimage by
the Shrine Board (which has always been
an exclusive affair of Board) but why
don't they ask the same thing for Vaishno
Devi pilgrimage? Is this something media
can't understand?
Look at the blatant discrimination
unleashed by the Shrine Board. In
Pahalgam our hotels can offer a
monthly occupancy of 250,000 beds
but the Shrine Board does not allow
pilgrims to stay in hotels. They create
separate camps for them and then
demand land allotment for creating
Epilogue Ø
19 ×
October 2008
permanent structures. How do you
explain this? The then Chief Executive
Officer of the Shrine Board is on record
having said that a dam will be
constructed and exclusively owned by
the Board for power generation. Don't
you see this tendency of creating a
“State within State”. Just imagine
what happens when they talk of taking
over our tourist spots of Pahalgam and
Gulmarg. We protested against these
basis biases but were unfortunately
labeled as communalists and
secessionists.
Well let's come back to the trans-LoC
trade. What is the quantum of trade
you see happening between both
parts of Kashmir. Who gets the
maximum benefit –this Kashmir or
that?
As I already said this is not going to be a
symbolic trade. We are gearing up for
business in real terms. The quantum of
trade as it appears on the list is not
much but this has to go up with the
passage of time.
This side of Kashmir stands to benefit
most from the trans-LoC trade for very
simple reasons of efficient logistics.
Besides handicrafts, what we sell most
is fruits and vegetables which are
perishable goods. It takes 36 hours for
our trucks to reach New Delhi while
Islamabad is just 8 hours away. Once
we are in Islamabad, our good are in
the international market. We have
signed a memorandum of
understanding with the traders in
Dubai and they will get in touch with
the Pakistan Foreign Ministry for
procuring goods from Islamabad. Other
side of Kashmir too enjoy benefits of
economic spin offs. Our apple produce
alone is worth Rs 2500 Crores. Just see
if this traded through Muzaffarabad
commissions can make a huge
difference.

opening of Jehlum Valley road,
transportation cost and time,
particularly for perishable commodities
will be reduced drastically. Normally a
truck takes 36 to 40 hours from Srinagar
to markets in New Delhi and much
longer to other markets. Islamabad is
just 6 to 8 hours away from Kashmir
besides this road being all weather and
dependable. The Kashmiri traders
besides saving on transportation are
looking at wider international markets
beyond Muzaffarabad and Islamabad.
“We have spoken to people in Dubai and
other countries to trade with us via
Pakistan”, says Shah.
Estimates suggest that in next few
years, the trans-LoC trade could touch
anything upwards One Billion US
Dollars. It is the enormously high
potential of trade which has made
I N F O C U S
LOC TRADE
government's finance wizards both in
New Delhi and Islamabad to give a slow
start to the process so that the whole
gamut could be understood. Pakistan
administered Kashmir traders are
reportedly less enthusiastic in the LoC
trade as they expect a clear dominance
of their Indian counterparts in the
coming years. “they don't have much to
sell here which is why they have been
dragging feet for last two years”, says
Ram Sahai, the President of Jammu
Chamber of Commerce and Industry
commenting on delay in arrival of a
delegation of Muzaffarabad Chamber of
Commerce and Industry.
The trade and commerce bodies in
Jammu are not too overwhelmed. In the
initial list of commodities to be
exchanged, Basmati rice and Rajmash
are the only items Jammu produces in
Epilogue Ø
20 ×
October 2008
plenty. “Though fruit is also produced in
Jammu region, particularly Bhaderwah
but this is nothing to be called as
trade…this is mere symbolic”, says
Sahai. “We have forwarded a list of 20
items to the Government and would
push for their inclusion”, he says. A
delegation of Pakistan administered
Kashmir Chamber of Commerce and
Industry is likely to arrive in J&K by
middle of October when both sides sit
down to work out the modalities.
Trust deficit
There is indeed a quite unpleasant
scenario prevailing in Jammu and
Kashmir. Trade between two parts of
Kashmir is being initiated at a time
when the Kashmiri traders are snapping
their ties with their Jammu
counterparts. Ever since the trans-LoC
‘MARCH TO MUZAFFARABAD’ :
Jehlum Valley Road, August 11

trade was first agreed upon 'in
principle' between New Delhi
and Islamabad in May 2006, the
trade and commerce lobbies
both in Kashmir and Jammu had
been working in tandem to see
this happening. Now when the
trans-LoC trade has become
reality, the Kashmiri and Jammu
based traders are not seeing
each other eye to eye. Kashmiri
traders accuse their Jammu
counterparts of siding up with
the alleged communal forces in
past two months to force, what
they say, 'economic blockade' of
the Valley. “We have lost trust in
Jammu traders and would never
like to deal with them again”,
says Mubeen Shah. His Jammu
counterpart Ram Sahai refutes
the allegations. Sahai, who was
part of the Shri Amarnath Yatra
Sangharsh Samiti, spearheading
two-month long agitation on
Amarnath land row, says, “there
was never any organized
blockade”. Describing allegations
as far from truth, he says,
“disruption of supplies is natural
during shut downs and curfews”.
Jammu and Kashmir has an
annual trade volume of around Rs
52,000 Crores and out this
around Rs 30,000 Crore exchange
is between Kashmir and Jammu.
If the ongoing boycott by
Kashmiri traders continue,
Jammu's trade economy is likely
to suffer a loss of something
between Rs 12,000 and Rs 15,000
Crores. “This is temporary and
under pressure from separatists,
we are sure Kashmiri traders will
resume ties with us”, said a trade
representative in Jammu who
I N F O C U S
LOC TRADE
did not wish to be named. The
Kashmiri traders however say
that they have already started
dealing directly with the traders
in other trade centers of country
with a view to bypass Jammu.
Trade and industry in Jammu
stands almost isolated at
present. The trans-LoC trade was
supposed to building trust on
both sides of Line of Control but
this is being initiated when there
is huge trust deficit within the
state.
Double whammy
For the Congress led United
Progressive Alliance
government, the initiation of
Cross-LoC trade is though a
major brownie point in its
peacemaking record, at the
same time it could be a most
difficult situation of the recent
times. The trans-LoC trade has
its own political advantages and
disadvantages. If the political
atmosphere continues like it is
prevailing now, the political
disadvantages may far outweigh
the advantages. It was the UPA
G o v e r n m e n t u n d e r Pr i m e
Minister Manmohan Singh which
won hearts of lakhs of people by
initiating two trans-LoC bus
services for divided families –one
in 2005 and other in 2006. That
was internationally billed as
mother of all Confidence
Building Measures and Pakistan's
then President Musharraf too
earned huge accolades. This
time the same route is being
thrown open for trade when
separatist sentiment in Kashmir
Valley is at its highest –perhaps
Epilogue Ø
21 ×
October 2008
highest so far. Many in Jammu
and elsewhere in the country are
What Is
describing initiation of LoC trade on Menu
“at this stage” as succumbing Exports
before the separatist pressure
Carpets, Rugs,
even though it has been a part of
Papier Mache,
composite dialogue.
Embroidery,
Alleging blockage of economic
Shawls and
supplies from Jammu during the
Amarnath land row, the Kashmiri Tapestry,
separatists announced a march Cricket Bats,
to Muzaffarabad with trucks Furniture, Silk
loaded with fruits. Home & Products,
Minister Shivraj Patil was on a Fresh Fruits,
two-day J&K visit as head of a Dry Fruits,
central delegation. At a Srinagar Kashmiri
Press Conference on August 11, Spacies,
Patil said, “I appeal these people Kashmir
not to make any such move which Saffron,
puts them (Kashmiri traders) and Kashmir
us in a difficult situation”. Patil
Wazwan,
went on say, “I appeal them from
Aromatic &
here, please put off your
Medical Plants,
proposal (of Muzaffarabad
Coriander,
march) as we are sincere about
Mong Dal,
opening the LoC route for
Rice, Basmati
trade…wait for October…this will
be open”. Patil's response to the Rice, Rajmash,
“Muzaffarabad call” was perhaps Black
enough to make a Confidence Mushroom and
Building Measure look like Green Tea.
surrender.
Imports
Patil's appeal notwithstanding on Spices, Apples,
August 11, lakhs of people from Walnuts, Rice,
different parts of Valley trooped Precious Stones,
to the Line of Control along Papier Mache,
Jehlum Valley road in their Powder, Gabbas
symbolic march to Muzaffarabad. & Namdas,
Security forces used force to Furniture,
thwart the attempt and 18 were Marble, Onion,
killed in two days. Since then Garlic,
people in Kashmir Valley have
Medicinal Herbs,
been in toes fighting pitched
Embroidered
battles with the forces. More than
Items, Pine Nuts
40 have been killed in firing of
and Carpets
security forces since August 11.

‘Let It Be Appeasement, Eventually
It Is Going To Be Pure Business’
Interview
Ram Sahai,
President, Jammu Chamber of Commerce and Industries
F
or a couple of years you have
been a part of discussions
and consultations on the
process as one of most vocal
votary of the trade. How do you look
at the scenario when prospects of
trans-LoC trade between two parts of
Jammu and Kashmir are appearing
more practical than ever?
Well, in backdrop of recent tension
between Kashmir and Jammu, I don't
want to comment much except that the
trans-LoC trade is good happening but it
is being projected in a wrong manner.
W r o n g m a n n e r ? Yo u m e a n
appeasement to separatists following
their march to Muzaffarabad?
Let it be appeasement but eventually it
is going to be trade to the common
benefit of all stakeholders on both sides
of Line of Control.
How do you look at the list of items
agreed upon for trade? Does this really
make a business sense?
The initial list which we are seeing now
does not hold much promise but
eventually it has to expand to make
trade more practical.
Most of the items on trade list have
their Kashmir specific origin –like
fruits, dry fruits, handicrafts etc.
I N F O C U S
LOC TRADE
what does Jammu gain out of it.
I told you the present list is more
symbolic in nature but eventually it has
to expand. We believe that the list is
being revised to accommodate apple
which was not on the original menu and
taking advantage of this revision we
have made a strong case of inclusion of
some more items which will make
Jammu region an equal partner in trans-
LoC trade.
So what are those items?
We have asked for inclusion of
pharmaceuticals, aluminium cables,
copper cables, welding electrodes, TMT
steel, paints and varnishes, plastic
goods, corrugated packaging, sanitary
wares, coir and spring mattresses and
pipe fittings etc. Jammu has huge
potential of all these products and any
good number of items agreed from this
list can change destiny of the region.
Nine to ten of the top pharmaceutical
companies of India are based in Jammu.
Other products named above are of
international quality and offered at
highly competitive prices. Most of these
items in the Pakistan administered
Kashmir are of Chinese origin and reach
there at a high cost. Trade in these
commodities will help both regions
immensely.
Poonch-Rawalakote road is also being
thrown open for trade along with
Srinagar-Muzaffarabad. Poonch falls in
Epilogue Ø
22 ×
October 2008
Jammu region. What prospects do you
see for this route?
Not quite bright. We are making a
strong case for opening of three other
routes –from Nowshera, Pallanwalla and
Suchetgarh. On Sialkote-Suchetgarh
road –which will run across
International Border in Jammu region
–we have support of top trade and
industry lobbies of the country
including FICCI and ASSOCHAM. Once
there routes are opened, the Poonch-
Rawalakote route would have hardly
any utility for trade.
It is nice that trade links are being
established across Line of Control but
within state gulf is seen widening.
Kashmir based traders are snapping
ties with Jammu on the allegations
that economic blockade of Valley was
forced during Amarnath land row.
First of all I would like to clarify that
there was no economic blockage at all.
There may have been some disruptions
but that is normal when normal activity
of life is concerned. As far as widening
gulf and snapping of trade ties between
Kashmir and Jammu is concerned, this
problem is momentary and will settle
down soon. Kashmir and Jammu are
interdependent and inseparable parts
of the state as whole and they have to
live with and deal with each other. It is
unfortunate that the politicians are not
playing a role of cementing ties.
 D O C U M E N T
LOC TRADE

Indo-Pak Joint Statement

New York, September 25, 2008

T
he President of Pakistan and
Prime Minister of India met
during the 63rd UNGA session
in New York. Prime Minister
Singh congratulated President Zardari
on his election as the victory of
democracy in Pakistan.
He expressed the hope that this would
pave the way for a profound
transformation of the bilateral
relationship so that India and Pakistan
could work together on their shared
objectives of peace, prosperity and
security.
Both leaders welcomed the several
positive outcomes of the four rounds
of the Composite Dialogues which
have brought their people and
businesses and institutions closer
while permitting sustained efforts to
be made to resolve all outstanding
issues: these gains need to be
consolidated.
They agreed to work for an early and
full normalisation of relations
between India and Pakistan, on the
basis of mutual respect, peaceful co-
existence and non-interference. Both
leaders acknowledged that the peace
process has been under strain in
recent months.
They agreed that violence, hostility
and terrorism have no place in the
vision they share of the bilateral
relationship and must be visibly and
verifiably prevented.
Severe actions would
be taken against any
element directing or
involved in terrorist
acts.
Pr e s i d e n t Z a r d a r i
reassured PM Singh
that government of
Pakistan stand by its
commitment of
January 6, 2004. Both
leaders agreed that the
forces that have tried to derail the
peace process must be defeated.
This would allow the continuation and
deepening of a constructive dialogues
for the peaceful resolution and
satisfactory settlement of all bilateral
issues including Jammu and Kashmir.
The Foreign Secretaries of both
countries will schedule meetings of
the 5th round of 'Composite Dialogue'
in the next three months which will
focus on deliverable and
comprehensive achievements.
The cease-fire should be stabilised to
this end, DGMOs and sector
commanders will stay in regular
contacts.
A special meeting of the Joint Anti-
Terror Mechanism will be held in
October, 2008 to address mutual
concerns including the bombing of the
Indian Embassy in Kabul.
The expansion of people-to-people
contact, trade, commerce and
economic cooperation provides an
effective platform to develop and
strengthen bilateral relations.
Towards this end, it was decided to:
Open the Wagah-Attari road link
to all permissible items of trade.
Open the Khokrapar-Munnabao
rail routes to all permissible items of
trade.
Continue interaction between the
planning commission of both the
countries to develop mutually
beneficial cooperation including the
energy sector.
Commence cross LoC trade on the
Srinagar-Muzaffarabad and Poonch-
Rawalakot roads on October 21, 2008.
Modalities for the opening of the
Skardu-Kargil route will be discussed
soon.

Epilogue Ø
23 ×
October 2008

Making Borders Irrelevant
P.R. Chari & Hasan Askari Rizvi
This report commissioned by USIP,
analyzes the possibilities and practicalities
of managing the Kashmir conflict by
“making borders irrelevant” —softening
the Line of Control to allow the easy
movement of people, goods, and services
across it. The report draws on the results of
a survey of stakeholders and public
opinion on both sides of the Line of
Control. The results of that survey,
together with an initial draft of this report,
were shown to a group of opinion makers
in both countries (ff bureaucrats and
diplomats, members of the armed forces,
academics, and members of the media),
whose comments were valuable in refining
the report's conclusions. P. R. Chari is a
research professor at the Institute for Peace
and Conflict Studies in New Delhi and
former member of the Indian
Administrative Service. Hasan Askari
Rizvi is an independent political and
defense consultant in Pakistan and is
currently a visiting professor with the
South Asia Program of the School of
Advanced International Studies, Johns
Hopkins University. This report was
commissioned by the Center for Conflict
Mediation and Resolution at the United
States Institute of Peace. The Center
supports a variety of projects that explore
the potential of cross-border collaboration
especially economic and business-based
cooperation to resolve the protracted
conflict between India and Pakistan.
Epilogue Ø
I N F O C U S
LOC TRADE
Summary
N
either India nor Pakistan has been able to impose its
preferred solution on the long-standing Kashmir conflict
and both sides have gradually shown more flexibility in
their traditional positions on Kashmir, without officially
abandoning them. This development has encouraged the
consideration of new, creative approaches to the management of the
conflict.
The approach holding the most promise is a pragmatic one that
would “make borders irrelevant”—softening borders to allow
movement of people, goods and services instead of redefining or
removing them. The governments of India and Pakistan have both
repeatedly endorsed the concept, but steps to implement it have been
limited.
Myriad suggestions for putting this new mantra into practice have
been made, from establishing more bus services to increasing trade
and tourism across the Line of Control (LOC).While some of these
suggestions still await official consideration, others are being
examined, and some have already been implemented.
Liberalization of the travel regime would be a major step toward
enabling the two parts of Kashmir to develop a multifaceted and
normal relationship. Such liberalization requires overcoming a
mixture of political, bureaucratic, and regulatory challenges.
A survey of opinion on both sides of the LOC reveals that the public
mood in both countries favors peace, stability and a softening of the
LOC. The international climate is also propitious for confidence-
building measures.
It remains to be seen, however, if New Delhi and Islamabad can
muster the political will necessary to overcome the resistance of key
stakeholders within both countries bureaucracies and militaries.
24 ×
October 2008

Minds Set in Concrete
The strategic compulsions on the
Kashmir issue that are currently
impelling the ruling elites in India and
Pakistan have encrusted over its sixty-
one-year history and are now deeply
embedded in their psyches. In India, the
ruling elite is adamant that the princely
state of Jammu and Kashmir (J&K),
having acceded to India in October
1947,has become an inalienable part of
Indian territory and that Pakistan must
vacate the territory it illegally
occupies. Hence, the only dialogue
India needs to hold with Pakistan is a
discussion about the return of occupied
territory. Further, India refuses to
accept any form of third-party
intervention to resolve the Kashmir
dispute. India argues that the UN
resolutions on Kashmir passed in 1948
and 1949 envisaging the holding of a
plebiscite in J&K have become obsolete
with the passage of time, and that
several elections held in J&K over the
past six decades make it clear that the
local population accepts the Indian
government and has no desire to join
Pakistan.
Pakistan rejects the Indian argument
that the UN resolutions have become
redundant. Indeed, Pakistan's position
on Kashmir has always been based on
the strict implementation of the UN
resolutions that call for holding a
plebiscite in J&K to determine whether
its people wish to join India or Pakistan.
Forgotten in this standoff are the
Kashmiris living in J&K and Azad Jammu
and Kashmir (AJK, the political entity on
the Pakistani side of the LOC).In the
past, the Kashmir dispute was viewed in
purely bilateral terms and the
I N F O C U S
LOC TRADE
aspirations of the Kashmiris were
largely ignored, but there is now a
growing appreciation of the fact that
any solution to the Kashmir dispute
must be acceptable to the local people.
An additional complexity in J&K is the
conviction among many people in two
sub-regions of the state Jammu and
Ladakh—that the agenda for the peace
process has been hijacked by the
Muslims in the
Kashmir Valley. Consequently, the
Kashmir dispute becomes tri-cornered
at two levels: India, Pakistan and
Kashmiris on both sides of the LOC at
one level and the Valley, Jammu and
Ladakh at another level. The
multifaceted nature of this conflict has
complicated the quest to resolve it,
requiring management of the regional,
ethnic and religious diversities both arts
f Kashmir.
Despite their repeated assertions of
these conflicting claims and
counterclaims, India and Pakistan have
been unable to extend their respective
claims across the LOC. Neither direct
military action nor covert operations
nor support for dissident movements
has thus far succeeded. Each country,
however, has invested too heavily in the
struggle to accept the loss of its part of
Kashmir, and both countries reject the
i d e a of Ka sh m i r b e c om i n g a n
independent state.
Changing attitudes
The Kashmir dispute has reached an
impasse. Unable to impose their
preferred solution, both India and
Pakistan have become flexible
regarding their traditional positions on
Epilogue Ø
25 ×
October 2008
Kashmir, without officially abandoning
them. Subtle changes in their positions
have stimulated creative ideas for
managing the conflict. Several
developments have contributed to this
attitudinal shift, among them the end of
the Cold War, the disintegration of the
Soviet
Union and the current resurgence of
Russia, the rise of China and its support
for the peace process between India
a n d Pa k i s t a n , t h e s p r e a d o f
globalization and its implications for
international security, internal
economic pressures, the nuclear tests
conducted by India and Pakistan in May
1998 that consolidated a nuclear
deterrent relationship, and the U.S.
global response to the attacks of
September 11, 2001.
The last two of these developments
have led India and Pakistan to realize
that a military victory over the other is
not possible. The acquisition of nuclear
weapons has highlighted the grave risks
of trying to alter the status quo by
military means, as illustrated during the
Kargil conflict of 1999 and the 2001-02
border confrontation. During the Kargil
conflict neither country could extend
its theater of operations because of
fears that the conflict might become
nuclearized. For similar reasons, India
was deterred from attacking Pakistan
during the border confrontation in
2001-02. Pakistan has also realized the
dangerous implications of supporting
militancy; it was Pakistani-backed
militants who attacked the Indian
Parliament on December 13, 2001,
triggering the border confrontation.
Pakistan's readiness to support
militancy has also diminished since
Pakistan itself has become the target of

Islamic jihadists and has experienced
terrorist attacks throughout the
country.
The U.S. global war on terrorism has
also increased the cost for Pakistan of
indulging in provocative behavior. The
terrorist attacks in New York and
Washington, D.C., on September 11,
2001, created a global consensus for
controlling transnational terrorism,
especially Islamic militants and jihadi
groups. Pakistan has since found it
difficult to support the jihadi Islamic
groups in J&K. Furthermore, the
passage of a 2007 law in the United
States has linked American military and
economic assistance to Pakistan to its
performance in stopping cross-border
terrorism. The United States has now
established a physical presence in
Pakistan to pursue its “war on terror” in
Afghanistan, which inhibits hostilities
being initiated by either India or
Pakistan. Any attempt by either country
to improve its ground situation in
Kashmir would be frowned upon by the
international community and might
prompt economic repercussions, as
occurred during the 2001 –02 border
confrontation crisis when “travel
advisories ” were issued by the United
States and several other developed
countries, is couraging heir citizens
from visiting India.
Given that a major conventional
conflict is dangerous, a nuclear conflict
is unthinkable, and any forcible
alteration of status quo would be
unacceptable to the international
community, both India and Pakistan
have realized that they have no
alternative but to enter into a peace
process. India has discarded its
traditional stand that the whole of
I N F O C U S
LOC TRADE
Kashmir belongs to India and has shown
signs of departing from its stated policy
of negotiating with Pakistan only after
cross-border terrorism ceases. Further,
India's long-standing policy of shunning
international mediation and insisting on
strict bilateralism in its dealings with
Pakistan has been diluted considerably.
On Pakistan's part, former President
Pervez Musharraf abandoned his
country's traditional position of insisting
on implementing the UN resolutions on
Kashmir. The new government in
Pakistan has declared that it wishes to
take the peace process forward.
Indeed, Asif Zardari, cochairman of the
Both countries agree that
independence for Kashmir is not
an acceptable option, although
they also agree that the
Kashmiris should be included
within the peace process.
Pakistan People's Party, even suggested
freezing the Kashmir issue, although he
later had to backtrack n hat proposal.
This transformation in India-Pakistan
relations can be traced back to Prime
Minister Atal Bihari Vajpayee's
statement in the symbolically
significant venue of Srinagar the
summer capital of J&K —on April 18,
2003, extending a “hand of friendship”
to Pakistan. A cease-fire along the LOC
was suggested by Pakistan's Prime
Minister, Zafarullah Khan Jamali, in
November 2003. India accepted his
offer and suggested its extension to
Siachen, an undemorcated region north
of but adjacent to the LOC. On
November 26, the cease-fire went into
effect, greatly improving the safety of
Epilogue Ø
26 ×
October 2008
people living along the border. The
resulting peace process, though slow,
has made steady progress, with
significant improvements occurring in
cross-border communications and the
movement of people and goods.
A flexible impasse
The peace process and changing
attitudes have produced greater
transparency in negotiations for a
solution to the Kashmir problem. There
is a new realization that peace and
stability are essential for both countries
to attain their full political and
economic stature and that, conversely,
tensions and instabilities will retard
their growth, resulting in their internal
security situation deteriorating and
spilling cross orders.
Both countries agree that independence
for Kashmir is not an acceptable option,
although they also agree that the
Kashmiris should be included within the
peace process and assured a measure of
self-rule within the present borders of
the two countries, and that these
borders should be made more
permeable. Appreciation has grown of
the role that multiple dialogues can
play in animating the peace process and
of the need to reach an agreement on
the Kashmir dispute that is acceptable
to India, Pakistan, and the Kashmiris.
These negotiations must address the
differences between New Delhi and
Islamabad, New Delhi and Srinagar,
Islamabad and Muzaffarabad (the
capital of AJK) and finally, Srinagar and
Muzaffarabad. Both India and Pakistan
have a greater sympathy now toward
the human dimensions of the issue. A
new recognition has also accrued about
permitting freer movement of people

across the LOC, including members of
the media and political leaders from
both sides.
As part of this study, a survey was
conducted on both sides of the LOC to
elicit the opinions of various interested
groups —including businessmen,
members of the media, academics,
former government servants and the
public at large —regarding their
attitudes toward the peace process,
their understanding of the concept of
“making borders irrelevant,” and their
thoughts on what could be done to
advance that process. On the Indian
side, the survey was conducted in the
summer and the fall of 2007 in twelve
towns in J&K, with twenty-five
respondents in each town being chosen
at random from among the local
population. Budgetary and time
constraints dictated a smaller sample in
Pakistan, where the survey was
conducted in the districts of Mirpur,
Muzaffarabad and Rawalakot in AJK
among some fifty respondents,
including local people, refugees (post-
PP and immigrants after 1990),,
members of divided families, and those
living close to the LOC.
Similar questions were asked on both
sides of the border by interviewers who
had no contact with one another.
Remarkably, the answers obtained were
very similar. The most significant
finding is that the public mood among
Kashmiris on both sides of the border
favors peace and stability. Reflective of
a widespread fatigue with mutual
tensions and persistent instabilities and
of cynicism regarding officially inspired
negative propaganda—there is a popular
desire to normalize relations. This
sentiment has manifested itself in the
I N F O C U S
LOC TRADE
public's level of enthusiasm for visiting
the other country. Tourist traffic, as
well as other kinds of traffic, across the
border is growing rapidly and would
dramatically increase if the visa regime
was made less restrictive and travel
schedules were made less onerous.
A plethora of Track-II initiatives have
strengthened the official peace
process. Regular meetings between
officials involved in the Track-I process
have also created an atmosphere
favorable to normalizing bilateral
relations. Thanks in part to back-
channel diplomacy conducted by
interlocutors designated by both
countries, a serious commitment to the
Easily recognizable constituencies
in India and Pakistan have a
vested interest in continuing the
Kashmir dispute.
peace process can now be found at the
very highest political levels in both
Pakistan and India, despite some
reservations within their
bureaucracies.
At the same time, any resolution of the
Kashmir dispute will have to
acknowledge and overcome a number of
serious constraints on the peacemaking
process. Easily recognizable
constituencies in India and Pakistan
have a vested interest in continuing the
Kashmir dispute, seeing dangers to their
personal and institutional interests
should the dispute be resolved. For
instance, elements within both
countries' civil and military
bureaucracies, especially within their
intelligence agencies, know that their
centrality in the decision-making
Epilogue Ø
27 ×
October 2008
process would diminish if Kashmir
dropped off the national security
agenda. In addition, large sections of
the strategic elite (mm of serving and
retired civilian and military officials,
intelligence officers, concerned media
persons, academics, and politicians
with special interests in security
matters) argue that the time is not yet
ripe for the peace process to proceed
fruitfully. Their negative belief is
sustained by the parlous state of
domestic politics in India and Pakistan,
which constitutes the greatest
challenge to peacemaking. Any
individual or party pleading for a
deepening of the peace process is likely
to be attacked for “selling out” the
national interest. In India,
fundamentalist and hard-line Hindu
groups and right-wing parties are
opposed to any political
accommodation with Pakistan and to
any flexibility in India's traditional
position on Kashmir.
A similar situation exists in Pakistan,
where hard-line Islamic parties,
militant Islamic groups and major right-
wing political groups are critical of the
peace process and want the government
to revert to its earlier insistence on
implementing the UN resolutions on
Kashmir.
Any discussion of the options for
addressing the Kashmir dispute must
appreciate the importance Kashmiris
place on preserving their Kashmiri
identity and Kashmiriyat-based culture,
which is an amalgam of a distinct
language (KK a secular polity, and a
cross-cultural character that includes
elements of Islam, Buddhism, and
Hinduism. Kashmiriyat has greatly
eroded over the last three decades due

to increased Islamic orthodoxy and
militancy. The human aspects of the
Kashmir dispute must also be factored
into devising any solution to this
problem. Most people in the Kashmir
Valley (883 percent according to the
survey conducted) support the peace
process as a good beginning, but are
skeptical about its outcome, believing
that the peace process is meaningless if
it remains bilateral and excludes them.
These various constraints have stymied
the adoption of a number of possible
solutions to the Kashmir dispute. The
governments of India and Pakistan,
academics, and others interested in the
welfare of the people of Kashmir have
explored options ranging from total or
partial independence to autonomy,
referendum, partition, and even the
maintenance of the status quo. None of
these comprehensive solutions has been
supported by any consensus of public
opinion, which strengthens the case for
reducing tensions by measures that
both sides can accept measures such as
making the existing borders permeable
and irrelevant.
The potential Value of Making
Borders irrelevant
The strategy of making borders
irrelevant by “softening” borders is a
compromise between the elimination of
the LOC and its conversion into an
international border. Under this
approach, the LOC would be retained as
a dividing line but softened by allowing
the easy movement of people, goods
and services across it. Important steps
were taken by India and Pakistan in 2005
and 2006 to effect this cross-LOC
interaction, and these steps could be
expanded to enable the parties to
I N F O C U S
LOC TRADE
manage the Kashmir conflict without
having to agree to a final settlement.
These steps would address the major
concerns of the parties involved and
would be in accordance with the basic
policy parameters laid down by the two
countries. The Indian government has
repeatedly argued that borders cannot
be changed, while Pakistan refuses to
accept the LOC as an international
The LOC would be retained as
a dividing line but softened by
allowing the easy movement of
people, goods and services
across it.
border. The softening of the LOC would
thus satisfy Indian demands that there
be no territorial exchange and no legal
alteration of the border. Another
advantage from the Indian
government's perspective is that
making the LOC irrelevant skirts the
dangers of encouraging other states in
TERMINAL : Central team at Kaman Post an Sept. 6
Epilogue Ø
28 ×
October 2008
the Indian Union to demand greater
autonomy or self-rule. Were Kashmir to
be granted greater autonomy or self-
rule, similar demands could be voiced
by other states in the Union, which
would need to be conceded on grounds
of equity. The Union government has
been wary of loosening its political,
economic, and administrative control
over the states and altering the balance
of power within India's federal
structure, lest it release centrifugal
forces in the country.
In Pakistan, any solution premised on
the permanent division of Kashmir is
anathema to the military, as well as to
the major political parties. Therefore,
the Pakistani government and the
military are unwilling to accept any
solution that converts the LOC into an
international border. However,
conscious that neither India nor
Pakistan can gain control over the whole
of Kashmir by either war or diplomacy,
Pakistani officials favor the idea of
making the LOC irrelevant. Incidentally,

no group in Pakistan opposed the
launching in 2005 of the Muzaffarabad-
Srinagar bus service (discussed below),
and similar steps would be acceptable
to the Pakistani government, which is
already seeking to build support for a
“pragmatic” solution to the Kashmir
dispute. On August 15, 2007, Pakistan's
foreign minister, Khurshid Mahmood
Kasuri, said in an interview that any
solution to the Kashmir problem cannot
be “ideal” for the concerned parties,
but that both parties will have to make
concessions to resolve the problem. He
added, “Ultimately a solution to
Kashmir will be one that is not the best
perceived either by a majority of
Indians, majority of Pakistanis or a
majority of Kashmiris.” Within Kashmir
itself, the proposal to make borders
irrelevant means different things to
different people. Some understand it to
mean that different parts of Kashmir
will be united, other interpret it to
mean that they will be allowed to travel
and trade freely, and still others believe
that making borders irrelevant will
permit greater cultural exchanges.
These differences in understanding are
not important to a resolution of the
Kashmir problem. What is significant is
that the proposal accommodates the
immense ethno-political diversity and
incipient fissiparous rends within he
region. The value of peace has been
underlined since the devastating
earthquake of October 2005; as
Kashmiris have come to realize, if
efforts to rehabilitate and reconstruct
the damaged areas are to proceed
smoothly, peace needs to prevail. More
generally, most Kashmiris believe that
increased movement across the LOC
would not only bring relief to divided
families but would also revive the area's
I N F O C U S
LOC TRADE
economy and help people in the two
parts of Kashmir to understand one
another and evolve a common position
on a possible solution to the dispute.
The Kashmiri intelligentsia remains
convinced, however, that neither India
nor Pakistan will ever agree to the
unification of the state except on its
own terms (terms that the other
country will inevitably reject)and that
the idea of making borders irrelevant is
thus the best available option.
According to the survey, most Kashmiris
believe that “vested interests” (i.e. the
armed forces and intelligence
organizations) oppose the idea of
making borders irrelevant because they
Conversations with local people
suggest that divided families
constitute more than 60 percent
of the total population in AJK.
will lose their relevance and budgets if
the peace process succeeds. The Union
government and the J&K government
are also seen as stumbling blocks, being
slow to make decisions and insincere in
their commitment to the peace process.
A small section of the public believes
that free and increased movement
across the LOC would generate new and
unpredictable dynamics with the
potential to embarrass both national
governments, and might even lead to
the development of a new Kashmiri
consciousness, which would be
welcome Islamabad and New Delhi.
Several constituencies in Kashmir have
a vital interest in seeing the borders
between the two Kashmirs reopened.
The most numerous of these groups are
the divided families, especially poor
Epilogue Ø
29 ×
October 2008
families, who, when the border
remained closed, had to travel long
distances by circuitous routes to meet
their relatives. Conversations with local
people suggest that divided families
constitute more than 60 percent of the
total population in AJK. Although they
do not have any influence over the
policies of their respective
governments, divided families do enjoy
widespread support within civil society
at regional and national levels.
The strongest support for the idea of
soft borders is found within the business
communities, in particular within the
manufacturing, horticultural, and
tourism industries throughout Kashmir.
The business community believes that
movement of goods across a divided
territory is a natural corollary to the
movement of divided families. If trans-
LOC arrangements are negotiated to the
satisfaction of the two countries and
offer tangible benefits to people in both
parts of Kashmir, these measures will
gain popular support. Much depends on
what arrangements are negotiated and
how swiftly they are implemented.
Steps toward Making Borders
irrelevant
A wide range of measures have been
proposed to promote interactions
across the LOC and enable the two parts
of Kashmir to develop a multifaceted
relationship. Some of these measures
are already being implemented. Others
are in various stages of negotiation or
implementation. Still others remain
just proposals for now, being seen as
impractical or too far-reaching one or
both governments. In essence, they all
emphasize a people oriented approach
while highlighting the need for freer

CHINARI MUZAFFARABAD
movement of people and trade across
both sides of Kashmir, instead of
continuing the quest for an elusive
territorial solution to the Kashmir
problem.
Measures with the potential to make
borders irrelevant can be classified into
four broad categories:
* Promoting people-to-people
contact
* Increasing trade and commerce
across the LOC
* Encouraging humanitarian aid and
development.
* Improving governance, including
I N F O C U S
LOC TRADE
PESHAWAR
ISLAMABAD
FIRST RUN :
Srinagar-Muzaffarabad bus, April 7, 2005
security administration.
The most significant step toward
increasing cross-border mobility
has been the reestablishment of
bus services.
Each of these four categories is
discussed below. In each case, the
discussion covers steps already taken,
steps proposed, difficulties in
implementing specific measures and
possible solutions to those difficulties.
Thereafter, this report takes an in-
depth look at one particular measure,
liberalization of the travel regime an
Epilogue Ø
30 ×
October 2008
issue critical to both cross-borders,
people-to-people contacts and trade
a n d e x p l o r e s t h e r e g u l a t o r y,
bureaucratic and political changes that
need to be made to allow liberalization
of proceed.
People-to-People Contact
People-to-people contact can be
enhanced by facilitating cross-border
mobility and by creating and
strengthening civil society linkages.
Facilitating Cross-Border Mobility
Crossing points: India and Pakistan
decided to ease interaction across the
LOC after the earthquake in Kashmir on
October 8, 2005; the AJK part was hit
very hard and several districts in the
Northwest Frontier Province were also
affected. On October 29 the two
countries agreed to open five new
crossings on the LOC to expedite relief
operations and reunite divided families.
These five foot-crossings were Nauseri-
Tithwal, Chokothi-Uri,
Hajipur-Uri, Rawalakot-PP and
Tattapani-MM When the first crossing
point, Rawalakot-Poonch was opened
on November 7 to allow the exchange of
earthquake relief goods, several
hundred Kashmiris on the Pakistani side
surged toward the LOC in their
eagerness, saying they wanted to go to
the other side to meet their relations,
although they had not completed the
necessary travel formalities and had to
be restrained by force.
Bus Services: The most significant step
toward increasing cross-border mobility
has been the reestablishment of bus
services between J&K and AJK. In April

2005, the Srinagar-MM road was opened
and the bus service along it (which had
been suspended since 1965) restored.
This service was disrupted by damage to
the road caused by the October 2005
earthquake, but after some months the
service was restored. In January 2006
,India and Pakistan agreed to start
another bus service, linking Poonch and
Rawalakot. Official Indian statistics
show that almost three thousand
passengers traveled on the Srinagar-MM
bus service between April 2005 and the
end of 2006. The Poonch-Rawalakot bus
service, which started in June 2006,
carried fourteen hundred in the second
half of 2006.
The two bus services are very important
confidence-building measures.
However, passengers have to go through
a cumbersome procedure to get
permission from both governments to
cross the LOC, which discourages many
people from traveling. The federal
intelligence agencies need to verify visa
applications, which leads to delays.
Furthermore, only those applicants
with close relatives on the other side
are allowed to travel. There is also an
absolute prohibition on officials from
Pakistan traveling across the border into
J&K. Consequently, only a limited
number of people from both sides have
benefited from the new bus services.
Demands for simplifying the visa
procedures (for instance, by letting the
local state governments handle the
granting of visas) have not yet been
accepted by the two national
governments.
Road links: Calls have come from
several quarters for more roads to be
opened and more bus services
I N F O C U S
LOC TRADE
established across the LOC. In its report
issued in January 2007, the Working
Group on Strengthening Relations
across the Line of Control (established
in May 2006 by New Delhi as one of five
working groups tasked with exploring
particular issues relating to J&K)
identifies seven roads that could be
opened to cross-border traffic: Kargil-
Skardu, Jammu-Sialkot, Turtuk-
Khapulu, Chamb-Jaurian-MMirpur,
Gurez-AA Tithwal-Chilhan, and Jhangar
(N Mirpur-KK 4 “Kashmir:Present
Situation and Future Prospects,” the
2007 report by Baroness Emma
Nicholson, the European Union'
srapporteur on Kashmir, draws
attention to the value of linking Ladakh
with the Northern Areas in Pakistan, a
step that could erode the aspirations for
separatism in this subregion. A more
radical suggestion is to open the
Karakoram highway to trade and travel
from the Ladakh region in J&K. Several
A Kashmir passenger being received in Muzaffarabad
Epilogue Ø
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October 2008
of these new road openings are being
negotiated by the two governments.
The roads do not presently carry enough
traffic to make commercial bus services
viable, but their opening would allow
people to move across the LOC by
private transport and might eventually
generate enough traffic to permit
commercial bus services.
Proposals to improve cross-LOC travel
have been criticized on the grounds that
the number of travelers along the
Srinagar-Muzaffarabad road has
dwindled considerably since it was
opened in April 2005. While it is true
that the initial enthusiasm to use the
road has declined, it should be noted
that some travelers now prefer to take
the subsequently opened Poonch-
RRawalakot road. Moreover, the
symbolic significance —indeed mystique
of the Srinagar-Muzaffarabad road
should not be underplayed. Its opening

initiated the process of restoring
communications between AJK and J&K.
It has given concrete shape to the
“peace dividend,” which has influenced
other aspects of India-Pakistan
relations. It has also created a
psychological sense of space in the
Valley, because travel from the Valley to
other parts of J&K is seriously limited by
the unavailability of roads and adverse
weather conditions for much of the year
Pilgrimage Routes: A radical suggestion
has been made to open the Leh-Xinjiang
road across the LOC, which would
provide an alternative route for the
Kailash-MM yatra (pilgrimage)
undertaken by Hindus from India to
Tibet. This idea highlights the
possibility of cross-LOC traffic being
extended not just to major cities in
India and Pakistan but also to
Afghanistan, Central Asia and Tibet
thereby restoring the freedom of travel
that prevailed before partition and dad
existed since historical times.
Rail links: The establishment of rail
links between Jammu and Sialkot and
between Srinagar and Muzaffarabad
(and from there onward to Abbotabad
and Rawalpindi), would be welcomed by
people on both sides of the LOC and give
a great impetus to the peace process.
Creating and Strengthening
Civil Society linkages
Contacts between interest Groups:
Contacts between special interest and
professional groups need to be
encouraged so that Kashmiris can
participate in the search for peace. The
Working Group Report has
recommended exchanges between
I N F O C U S
LOC TRADE
students and faculty from universities
on both sides of the LOC, as well as
exchanges of journalists and lawyers.
Other groups that could profit from
exchanges include professional groups
concerned with public health and
disaster management.
Joint University: A multicampus
university could be established that
straddles the LOC. Initially, two
campuses could be situated in
Muzaffarabad and Srinagar, with other
campuses established subsequently in
other cities on both sides of the LOC.
This would facilitate the exchange of
Large-sscale trade in world-
famous Kashmiri products is
being conducted illegally, through
third-country sources and
smuggling.
teachers and students. According to the
survey conducted for this study, the
academic community strongly supports
cross-border schooling and employment
initiatives.
Telephonic Communications: The
restoration of telephone landlines that
were cut in 1965 and an expansion of
mobile telephone services across the
LOC should be considered. People in
J&K are not allowed to make direct
telephone calls across the LOC—yet this
prohibition makes little sense, or alls an
f course e made via mobile phones and
satellite-linked communications. The
government of India is reconsidering
this ban but the Indian security forces
want to maintain it, purportedly to
impede cross-border terrorism.
Electronic Communications: Enhanced
access to the Internet on both sides of
Epilogue Ø
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October 2008
the LOC would greatly stimulate
contact between people on both sides
of the border, allowing them to
exchange e-mail, post and respond to
blogs and stay abreast of developing
news stories. Internet access would also
allow journalists for electronic and
print media to develop closer cross-
border contacts with one another.
Television programs broadcast from one
side of the LOC can usually be watched
on the other side, and some attract
large audiences, reflecting the common
culture of the people on both sides of
the LOC.
Trade and Commerce
Trade between the two parts of Kashmir
is only a fraction of what it could be if
both tariff and nontariff barriers were
removed. Currently, the bulk of trade
between India and Pakistan trade
occurs via third-party transfers and
smuggling, leading to corruption and
the loss of customs revenue. The
reestablishment of pre-Partition
patterns of trade and commerce,
especially between the two parts of
Kashmir, would greatly assist the
improvement of mutual relations. It
would also spur economic recovery from
the October earthquake, and could help
to educe militancy, which is largely
fueled unemployment.
Horticultural products, handicraft
items, and dry fruits are the goods that
were traditionally exported from J&K to
markets in Pakistan's Punjab province.
Some newer and nontraditional items,
such as cement and construction
materials, are available at cheaper
prices in J&K and would find a strong
market in AJK, where reconstruction
efforts after the 2005 earthquake are

still under way. Open and free trade
between J&K and AJK would greatly
benefit people on both sides of the LOC,
especially the business and trading
community in Pakistan border districts
such as Sialkot and Gujrat. At present,
large-scale trade in world-famous
Kashmiri products such as shawls, wood
carvings, carpets, and embroidery is
being conducted illegally, through
third-country sources and smuggling.
The respondents to our survey, while
strongly advocating the case for trade
were keen to point out the comparative
advantage of establishing direct trade
links between J&K and Pakistan through
AJK. They argue that a truck takes
about thirty-six hours to reach Delhi
from Srinagar but only eight to ten hours
to reach Islamabad and thus Islamabad
offers a very attractive market for
Kashmiri products.
One must be careful not to exaggerate
the prospects for cross-border trade.
Hopes of creating a substantial demand
for Kashmiri products will be realized
only if road communications are
extended deeper into India and
Pakistan. One truckload of apples from
the Kashmir Valley, for instance, could
flood the markets in Muzaffarabad for a
week; hence the apple trade in the
Valley can flourish only if it is allowed to
exploit the lucrative markets located
farther within Pakistan.
In March 2008, Jairam Ramesh, the
Union minister for commerce in India,
announced that cross-LOC trade would
begin in ninety days. The issue was
discussed by the foreign secretaries of
India and Pakistan in May 2008, and a
decision in principle was taken to
proceed further; however, technical
issues regarding the kinds and amounts
I N F O C U S
LOC TRADE
of goods to be traded remain to be
negotiated.
Border trade and inspections: The
possibility of border trade being
permitted at the five crossing points
opened for earthquake relief is worth
exploring for the convenience of people
living on both sides of the LOC. The
roads that lead to these crossing points
could be upgraded to permit truck
traffic, assuming that such traffic is
found to be commercially viable and
official fears about smuggling can be
overcome. Administrative
arrangements for unloading and
checking goods at border posts need
improvement. The possibility of
identified goods (i.e. goods positively
identified by the Indian and Pakistani
governments for trade between the two
countries) going directly o heir ultimate
destinations, rather than navigating
web of inhibiting regulations and
procedures, merits consideration.
Bilateral trade promotion: The Working
Group Report recommends the
establishment of a Joint Consultative
Machinery, comprising officials and
representatives of commerce and
industry from both sides, to promote
bilateral trade. Baroness Nicholson's
report also stresses the need “to move
rapidly to significant volumes of official
trade, apart from working out the
modalities of road freight,” and
suggests the “establishment of an
integrated market development plan,
with several agri-processing units, cold
chains, small-size container services
and bonded trucking services” on both
sides of the LOC.
Bilateral trade would also be spurred if
both countries could agree to establish
product-specific trading houses and to
Epilogue Ø
33 ×
October 2008
open branches of commercial banks on
both sides of the LOC. At present,
however, this idea has yet to be
considered by the two governments.
One way to encourage cross-border
trade and commerce would be to waive
customs duties for several years,
thereby creating a free trade area in
Kashmir.
River Transport: The traditional export
route for timber from the Valley before
Partition was the Jhelum River, which
flows into Pakistan. The possibilities of
riverine transportation should be
looked at afresh. Cross-LOC
cooperation in this area might prove
productive, though the river would
need considerable de-silting before it
could once again carry Significant
Traffic.
Tourism : A radical idea for promoting
tourism is to enable people to visit
Buddhist historical and religious sites in
Ladakh, Baltistan and the Federally
Administered Tribal Areas region.
Humanitarian Aid & Development
In the process of making borders
irrelevant, a variety of humanitarian
measures and steps to promote
development could prove helpful.
Medical Treatment: Much goodwill
could be engendered, as well as much
practical help given to people who need
it, by allowing people who live on one
side of the LOC to receive emergency
treatment in hospitals on the other
side. Similarly, patients with particular
ailments could also be permitted to
cross the LOC to visit hospitals that
specialize in the treatment of those
ailments.

Demining : A joint effort could be
mounted to locate and remove
landmines that have been planted on
both sides of the LOC over the years and
that take a steady toll of farmers,
herders, and livestock.
Disaster Management: The two
Kashmirs could routinely share
information on weather conditions,
seismic activity and flow of water in
rivers information that could help to
generate early warnings of floods and
other natural disasters. Such
cooperation could evolve into a long-
term process of monitoring and
researching the retreat of glaciers, the
incidence of earthquakes, and other
environmental concerns.
Forest Management : Forest wealth is
the common heritage of Kashmir.
Cooperation in joint management of
forests that lie across the LOC is
essential to halt the large-scale illegal
felling of trees that takes place with the
connivance of civilian officials and
security forces. Such cooperation would
also enable environmental protection
of the delicate ecosystems in Siachen,
Saltoro, and other glacier regions.
Hydropower and Irrigation : Several
projects to share hydropower
generated on both sides of the LOC are
currently mired in bilateral
negotiations whose glacial pace reflects
the parlous state of India-Pakistan
relations but squanders Kashmir's
economic and developmental promise.
The linking of electrical grids would be a
major step forward in the process of
making the LOC irrelevant. So, too,
would mutually beneficial irrigation
projects that use the waters of the
Indus. The much-praised Indus Waters
I N F O C U S
LOC TRADE
Treaty is in reality a suboptimal
arrangement, because t only partitions
the rivers of he Indus River basin
between India and Pakistan and does
not address their joint exploitation. A
holistic scheme for interlinking these
rivers, developing riverine transport,
establishing joint irrigation and power-
generation projects, creating new
agricultural markets, and extending
roads and communications could lead to
a comprehensive economic
restructuring of the entire river basin.
In the meantime, the Himalayan
glaciers (the source for the rivers in the
Indus basin) continue to retreat,
underlining the fact that water
One way to encourage cross-
border trade and commerce
would be to waive customs duties
for several years, thereby creating
a free trade area in Kashmir.
resources could become survival issue
for the population an India and Pakistan
in the coming ears.
Governance
Just as there are many opportunities to
promote people-to-people contact, so
there is wide scope for enhanced
coordination between local government
and official institutions, especially
regarding public administration, on
both sides of the LOC.
Local Government Consultations: The
Working Group Report suggests
establishing a Joint India-Pakistan
Parliamentary Committee to foster
greater parliamentary exchanges and
address issues of common interest in
Kashmir. For instance, joint local
Epilogue Ø
34 ×
October 2008
government working parties could
explore trade and tourism issues.
Combating terrorism: A Joint
Mechanism on Terrorism met for the
first time in March 2007. Its Indian and
Pakistani members agreed to exchange
specific information to help
investigations and prevent violence and
terrorism in both countries. In a
meeting in June 2008, fresh information
was shared by the two countries, and it
was agreed that they would “continue
to work to identify counter-terrorism
measures [and] assist in investigations
through exchange of specific
information for preventing violence and
terrorist acts. Many skeptics predict an
early demise for this initiative, but at
present the usefulness and longevity if
the joint mechanism on terrorism are
both difficult o predict.
Military-Military programs: Given that
the militaries in India and Pakistan play
important political roles and maintain a
large presence in the area of the LOC,
measures to promote friendly contact
between the two militaries would
greatly improve the atmosphere.
Exchanges of military bands, the staging
of sporting events involving military
personnel from both countries and
similar measures merit exploration.
Liberalization of the travel
Regime
A close look at one particular aspect of
softening the LOC —liberalizing the
travel regime —shows the kind of
opportunities that exist for pragmatic
reforms. Most of these reforms would be
modest and piecemeal, but their
cumulative impact could be very
significant. The Srinagar-Muzaffarabad
bus service, resumed in April 2005, has

continued to ply between the two cities
despite threats from militants. There is
near-unanimous support for the bus
service. Many respondents to our
survey, especially local journalists who
also work for foreign agencies such as
Voice of America and the BBC,
commented that the bus service
between Muzaffarabad and Srinagar has
done more than any other measure to
change the mindset of people in AJK.
The opening of additional crossing
points has built upon this positive
development. One respondent, who
traveled by the first Srinagar-
Muzaffarabad bus, which took a very
circuitous route, told the interviewer
that the opening of the Tertiary Note
crossing point had reduced his journey
from Muzaffarabad to his village in J&K
from about nine hundred miles to just
over one hundred. There is a strong
demand among the local population for
the opening of more crossing points.
However, several problems need to be
addressed if the bus service is to be made
really effective. After the earthquake in
October 2005, the two governments had
decided to open five more crossing
points, but only three were inaugurated
and, as of August 2008, only two are
functional. For example, the crossing
point at Tata Pani (in the Poonch-Kotli
sector) is officially open, but no visitor
has used this crossing point during the
last seven months.
The limited number of crossing points is
not the only impediment to cross-
border travel, nor indeed the primary
one. Instead, the administrative and
security protocols governing travel
across the LOC are largely responsible
for limiting movement. The number of
passengers traveling on buses remains
very low chiefly because of the
I N F O C U S
LOC TRADE
stringent conditions imposed by
Pakistan and India on visitors wishing to
obtain travel documents.
In the first place, only members of
divided families are permitted to
travel. Even among such families, only
those having near relatives (i.e. parents
or children)on the other side of the LOC
are issued travel documents. Visits to
more distantly related kin are not
allowed. Second, the processing of the
applications takes an extraordinarily
long time because of highly complex
procedures, including close scrutiny by
security and intelligence agencies on
both sides of the LOC. Many applicants
are refused permission. For example,
between April 7, 2005, and August 30,
2007, the government of AJK sent a
total of 4,114 applications to the
government of J&K for clearance to
travel to Srinagar through the Chokothi-
Uri crossing point, but only 1,254 were
approved. Similarly, the government of
AJK received a total number of 3,938
applications from the government of
J&K for permission to visit AJK using the
same bus route, but only 1,070
passengers arrived from Srinagar in AJK.
During this period,6,558 applications
were sent to the security agencies for
clearance, but travel documents were
issued in only 4,114 cases.
The restrictions on travel and the
cumbersome and slow-moving
application process have dampened
Kashmiris ' enthusiasm for traveling. If
that enthusiasm is to be rekindled, the
following pragmatic steps need to be
taken.
Expand Eligibility: Eligibility to travel
should be extended to other categories
of travelers such as tourists, persons
requiring medical treatment, traders,
and even dissident political leaders. As
Epilogue Ø
35 ×
October 2008
noted earlier, Pakistani government
officials are totally prohibited from
traveling across the LOC, which conveys
a strongly negative message to the local
population. Members of Kashmiri
families who crossed the LOC from J&K
to AJK after the militancy accelerated
in the 1990s should —after due scrutiny
—also be allowed to visit their relatives
or move back to India.
Simplify permit procedures: One way to
simplify and shorten the process of
obtaining travel documentation would
be to institute a visa system, with each
traveler being issued a visa at the
border upon production of satisfactory
proof of identity and residence. Another
alternative would be to institute a
system in which any application not
decided within a certain amount of time
would be deemed to be approved.
Many respondents suggested that the
power to issue travel permits should
be delegated to the respective state
governments and local officials (see
below). However, this idea —like the
ideas advanced above—will be
accepted only if political relations
between India and Pakistan improve to
the extent that some degree of mutual
trust develops.
Simplify application Requirements:
Applicants for a travel permit must
submit multiple copies of several
documents. This procedure is so
complex and time consuming that most
respondents think it is easier to travel
on passports.
Many respondents proposed restoring
the procedure used during the 1950s,
when proof of state domicile was
considered sufficient for issuing travel
permits. There was no categorization of

applicants, and anybody could cross the
LOC (then the Cease-fire Line) to visit
close relatives. Other respondents
suggested that a local Kashmiri
document should be issued to all
Kashmiris and that this document
should be sufficient to enable its holder
to cross from one side of the border to
the other. A small number of
respondents also suggested that J&K
residents be given dual citizenship,
which would enable them to visit the
other side without any special travel
documents.
Liberalize Permit Characteristics:
Granting longer-term, multiple-entry
permits to traders and businessmen,
while exempting them from the
obligation to report to the police after
entering India or Pakistan, would
greatly facilitate trade and commerce
across he LOC. Issuing group visas to
traders, tourists and cultural
delegations would ease the burden on
both sides ' bureaucracies. A scheme for
issuing travel documents on a priority
basis in emergency cases (e.g., for
medical reasons or in case of family
emergencies should be instituted on
humanitarian rounds.
Localize Permit Processing: Permits
normally take three to four months to
be processed, because each case has
to be cleared by the intelligence and
security agencies of the two
countries. In some cases, the process
can stretch on beyond a year. Such
delays and the prospect of intrusive
investigations by the intelligence
agencies discourage many eligible
people from applying.
Respondents said they resented this
system and wanted the procedure
entrusted to the state authorities,
which could handle cases much more
I N F O C U S
LOC TRADE
quickly. If the state governments were
to take charge, they would be able to
work directly with one another, which
would promote greater understanding
and trust between the two parts of
Kashmir. These working relationships
between the administrations in AJK and
J&K could become the basis for
cooperation in trade and commerce,
and could evolve further into joint
efforts to maintain security and combat
sabotage and terrorism.
Some respondents to the survey said
that they would prefer a system in
which visas are issued by local police at
border posts, as opposed to the current
As all sides are coming to
recognize, the present borders
cannot be changed, but they can
be made more porous.
system of lengthy and elaborate visa
applications that are decided by the
militaries on both sides.
Conclusions
The conflict in Kashmir is complex and
multifaceted. As Praveen Swami, an
Indian journalist, has noted, “What we
call the Kashmir problem is in fact
several problems, for which Jammu and
Kashmir is only a stage. Among other
things, the problem involves
irreconcilable ideas about the basis of
nationhood, a crisis of religious and
ethnic identity, and the still-far-from-
spent forces that led to the partition of
India. For jihadi groups and their
supporters in Pakistan's establishment,
the war in Kashmir is merely part of an
even-larger war, one between Islam and
unbelief. If Kashmir is to stop being an
arena within which these larger battles
Epilogue Ø
36 ×
October 2008
are fought, the suspicions and tensions
that exist within and between the
various parts of Kashmir must be
addressed and the voice of the
Kashmiris on both sides of the LOC must
be heard and accorded due weight. As
all sides are coming to recognize, the
present borders cannot be changed, but
they can be made more porous and
larger measure of self-governance
evolved to J&K and AJK.
This report has offered a wide range of
recommendations for softening the LOC
that presently divides Kashmir. It is
important, however, to prioritize these
recommendations and to first pursue
those short-term measures that have a
prospect of immediate success, such as
a relaxation in travel arrangements. An
incremental approach must be
adopted, one that dovetails the
introduction of individual measures into
the larger process of confidence
building between the two countries. A
series of initial successes would give
momentum to the peace process and set
the stage for longer-term measures,
such as cross-border development
projects. The emphasis has to be on
implementing decisions taken, rather
than on adding to these decisions.
No steps, whether short term or long
term, can be taken until the tensions
between India and Pakistan erode. This
will not happen suddenly. The reality is
that India-Pakistan relations cannot be
dramatically improved over the short
run, nor can all their outstanding
problems be resolved quickly.
Unrealistic expectations that progress
in making borders irrelevant in Kashmir
will be swift and that India-Pakistan
relations will rapidly improve could lead
to frustrations. Moreover, the task of
making borders irrelevant in Kashmir

cannot be considered in isolation from
ongoing efforts to do the same thing
elsewhere along the international
border between India and Pakistan (for
instance, road and rail links are being
reestablished in the Rajasthan area).
Yet while the glacial progress of the
peace process to date has disheartened
even inveterate optimists, there is
reason to believe that a brighter future
is within reach. In the first place, the
process could certainly be accelerated
if the leaderships of the two countries
were to summon the necessary political
will. In the second place, as noted
earlier in this report, the belief has
seeped into the governing elites of both
India and Pakistan that the Kashmir
issue can be resolved only by
negotiation, not by armed conflict and
not by the use of insurgents.
Despite the domestic problems
confronting Pakistan since elections in
March 2008 brought an uneasy coalition
into power, the dialogue aimed at
improving India-Pakistan relations and
resolving the Kashmir problem has
continued on track, including efforts to
improve relations across the LOC. The
top brass of the Pakistan Army, who will
continue to shape Pakistan policy
toward Kashmir and India, seem to have
realized that the normalization of
relations with India is in their own
interests. More specifically, the
Pakistan Army needs to stabilize the
deteriorating situation in the tribal
areas along the Pakistan-Afghanistan
border; if it were to revive its usual
confrontation with India, it would get
caught in a two-front conflict. The
major opposition parties in Pakistan,
except for some Islamic fundamentalist
groups, are not opposed to exploring an
amicable solution to the Kashmir
I N F O C U S
LOC TRADE
problem. They are also not in favor of
playing the “jihadi card” in Kashmir at a
time when fundamentalist militancy has
become the target of almost universal
disapprobation.
The general political mood in India since
the recent elections in Pakistan has
been one of cautious optimism
tempered with watchfulness regarding
Pakistan's unfolding policy toward
Kashmir. Initial statements from
Pakistan's new government regarding
Kashmir and the India-Pakistan peace
process were generally supportive; the
key issue remains whether the Pakistan
Army or the civilian leadership will
dominate policymaking on Kashmir and
India-Pakistan relations. An increase in
border incidents along the LOC and
militant attacks within J&K has been
noticed but has been attributed to the
usual seasonal variations in the level of
violence and the proximity of state
elections in J&K.
If the political climate in India and
Pakistan offers some reason for
optimism about the peace process,
developments on the international
stage are decidedly encouraging. The
United States is greatly interested in
the success of the peace process overall
and in efforts to make borders
irrelevant in Kashmir, because renewed
confrontation along the LOC would
distract both countries, particularly
Pakistan, from supporting the U.S.-led
war on terror. The United States also
now has a physical military presence in
Afghanistan and Pakistan. The United
States is strengthening its strategic
partnership with India and has
designated Pakistan as its most-favored
non-NNATO ally. Both countries,
therefore, might well appreciate U.S.
facilitation of their peace process and
of a resolution of the Kashmir dispute.
Epilogue Ø
37 ×
October 2008
Washington is generally supportive of
the bilateral India-Pakistan peace
efforts but has not sought to involve
itself in the nitty-gritty of negotiations
and thus has not focused on measures
such as making borders irrelevant.
Over the past few years, China's
attitude toward India and Pakistan's
rivalry and their dispute over Kashmir
has changed; where once China favored
Pakistan, now it seeks to maintain
equidistance from both countries.
China's motives for this shift can be
found in its need to prevent tensions
and instabilities in Kashmir and
Afghanistan from spilling over into Tibet
and Sinkiang, and in its concern to
ensure peace and tranquility on its
southern periphery.
Sino-American relations have
transformed themselves since the end
of the Cold War into a partly
collaborative and partly competitive
pattern—a pattern that seems likely to
crystallize in the evolving international
system. For the first time, however, all
the major world powers —the United
States, China, Russia, Japan and the
European Union —have individual and
collective economic and strategic
interests in promoting the
normalization of India-Pakistan
relations. None of them wishes to
foment the Kashmir dispute, although
they might not find it possible to
mediate or promote its resolution. This
is, therefore, a propitious time for India
and Pakistan to explore the ideas
discussed in this report for making
borders irrelevant in Kashmir. While
international actors can help to
maintain a positive climate for the
peace process, the main responsibility
for making that process succeed rests
with India and Pakistan themselves.
 I N F O C U S
LOC TRADE

Poonch-Rawlakote
The Road Much Traveled, Less Visited

KD Maini

Mired in controversies and bogged down with suspicion, as the cross-LoC trade is finally okayed,
the road which connects 63 per cent of the all divided families between two parts of Jammu and
Kashmir is eagerly awaiting a truck terminal.

A
fter the ceasefire of
November 23, 2003 on the
Line of Control, the beginning
of fortnightly bus service on
April 7, 2005 on the Jehlum Valley road
and on June 20, 2006 on the Poonch
Rawlakote road, the duty free cross LoC
trade between the two parts of Jammu
and Kashmir shall be the third most
important Confidence Building Measure
of the recent history of conflict.
Trade, as keenly desired on both sides,
will not only help in creating peaceful
atmosphere, restoring the trust and
confidence in each other but also open
the doors of economic development and
prosperity of the people living in both
parts of Jammu and Kashmir. After the
Amarnath Shrine land row and the
happenings of August 11, in Kashmir in
which a prominent Hurriyat leader
along with number of persons was killed
while leading a symbolic march towards
Muzzafrabad, the Indian External
Affairs Minister Pranab Mukherjee had
stated that India had already forwarded
a proposal to Pakistan for opening the
cross LoC trade to begin from October 1,
2008. In the light of the statement of
the foreign minister, a high level central
team headed by Chief Secretary S.S
Kapur visited Salamabad and Kaman
Post on 6 September to review the
arrangements of truck service on
Srinagar-Muzafrabad road. The high
level team was also scheduled to visit
Chakkan Da Bagh Tetrinote crossing
point in Poonch on September 7.
However due to bad weather the team
could not land at Poonch but discussed
the proposal of cross LoC trade via 46
kilometer long Poonch Rawlakote Road
with the state authorities and accorded
clearance for creation of infrastructure
facilities for truck service.
Accordingly Poonch district authorities
identified 45 Kanal piece of land near
Rangar nallha for truck terminal
station. This terminal will have the
capacity of stationing, loading and
unloading of 40 trucks at a time. The
site is located exactly on Poonch
Rawlakote Road at a distance of 9
Kilometer from Poonch town and 3
Kilometer ahead of crossing Point on the
LOC. The complex shall comprise of
export examination hall, godown,
strong room, cargo X ray machine room,
custom office and Ancillary rooms for
loaders, drivers, staff personals etc.
This project shall cost Rs. 15.04 crores.
It is astonishing that 90% work of
temporary terminal station at
Salamabad in Uri Muzzafrabad road has
been completed but the work on Truck
terminal station at Rangar Poonch is yet
to start. Therefore lot of dissatisfaction
is emerging among the public because it
was expected that cross LOC truck
service shall start simultaneously from
Poonch and Srinagar. As per ground
realities Poonch Rawlakote Road is more
suitable most appropriate and the
shortest route between the two parts of
Kashmir as compare to Srinagar
Muzafrabad route, because this route is
passing from the heart of Pakistan
Administered Kashmir (PAK) and
directly linking six districts the LOC.
Originally Poonch Rawlakote Road was
conceived by Raja Jagat Dayal Singh of
Poonch Principality in 1938 who had
passed orders for the construction of
this road. However the Raja died in 1940
and Poonch came directly under the
control of Kashmir Darbar. Therefore
the construction of this road was
delayed till 1943 when fair weather
road was opened for traffic. From 1943
to 1947 Poonch Rawlakote Road was
used more for trade than passenger
traffic. In those days Rice, Maize,
Garlic, Chilies and other eatable items
were transported from Poonch to
Rawlakote which was the main
marketing centre of these items. During
the turmoil of 1947 most part of Poonch
principality had fallen into the hands of

Epilogue Ø
38 ×
October 2008

/kU;okn
THANK YOU - WE CHERISHED YOUR VISIT
jkoykdksV
LoC crossing point at Chakkan Da Bagh, Poonch
rebels and tribesmen who were
operating under the supervision of
P a k i s t a n a r m y. U n d e r t h e s e
circumstances Rawlakote town was
vacated on 14 November 1947 by
Colonel Hiranand Dubey of State forces
when he along with a contingent of
force and a caravan of 10 thousand
refugees had left Rawlakote for Poonch.
from November 1947 till 7 November
2005 there was no people to people
contact between both the parts of
Kashmir in Pocnch area.
The Poonch Rawlakote Road remained
suspended for about 58 years; it was
only after the earthquake of 2005 when
relief and rehabilitation centre was
established at Kanchàman Post on 7th
I N F O C U S
LOC TRADE
RAWALAKOT
The Poonch Rawlakote Road
remained suspended for about 58
years; it was only after the
earthquake of 2005 when relief
and rehabilitation centre was
established at Kanchàman Post
th
on 7 November 2005 for
exchange of relief material and
meeting of divided families on
humanitarian grounds. Later on
this route was replaced by
Poonch Rawlakote Road on 2th
June 2006.
Epilogue Ø
39 ×
October 2008
November 2005 for exchange of relief
material and meeting of divided
families on humanitarian grounds. Later
on this route was replaced by Poonch
Rawlakote Road on 2th June 2006. At
the time of inauguration of fortnightly
bus service from Poonch the UPA
Chairperson Sonia Gandhi had offered
Pakistan for more CBM's on the LOC
including trade and tourism but
Pakistan government was reluctant and
non cooperative for cross LOC trade due
to certain reasons.
Therefore during last 28 months only
divided families could travel across the
LOC, even than this CBM has created
very congenial atmosphere in both the
parts of Kashmir.

As per the experience of two and half
years, Poonch Rawlakote Road have
become the prime route between the
two parts of Kashmir because it is
centrally located and 63% divided
families belongs to the regions from
where this road is passing. The fact is
revealed from the passengers who
traveled during this period. As per the
official figures 4836 persons had crossed
the LOC from Poonch Rawlakote React
during last 28 months while only 3674
persons cross the LOC via Srinagar
Muzaffrabad road in 41 months. Even in
this figure of 3674, a significant
percentage of passengers have been
from Jammu province,
particularly from districts of COMMODITY
Rajouri and Poonch. Therefore
the frequency of bus service Sugar
a c r o s s L O C f r o m Po o n c h Cement Bag
Rawlakote road have been Mutton
increased and fixed at weekly Mustard Oil
basis from September 2008 Chicken
keeping in view the more Tomato
pressure of passengers on this Onion
road. Desi Ghee
Refined Oil
In the modern world trade is
considered the father of all the
relations. The opening of Poonch
Rawlakote road for trade shall further
strengthen the relations between the
people and boost the economy on both
the sides. More avenues shall be
available for commercial ventures. The
persons visiting Poonch from across the
LOC tells that the rates of essential
commodities in Pakistan Administered
Kashmir are far higher than this side.
The rate list of Rawlakote bazaar
indicates that sugar is sold at the rate &
65 per Kg, Basmati rice at the rate of
130 per Kg, cement bag at the rate of Rs
475, Mutton at the rate of Rs 275 per Kg.
Mustard oil at the rate of Rs. 195 per Kg,
and Kerosene Oil at the rate of Rs. 70
I N F O C U S
LOC TRADE
per litre. The guests of PAK after visiting
Poonch and Rajouri carries bundles and
bags of umbrellas, torches, clothes,
electronic goods and eatable items.
These items can be exported to PAK
from Poonch and Jammu,
Basmati rice of Jammu Maize of Poonch
and Rajouri electronic goods,
readymade garments toys and steel
items manufactured in Jammu can be
exported to the other part of Kashmir
very easily from this road. There is a
great demand of cotton cloth Khan
Suits, Pashawri chappal, Karakulli Cap
and crockery items in Poonch Rajouri
PRICE
Poonch
Rs. 21
Rs. 298
Rs. 150
Rs. 85
Rs. 70
Rs. 20
Rs. 12
Rs. 170
Rs. 80
and Kashmir valley which are available
on the other side of LOC. The people of
this side are fond of natural salt of
Pakistan which can also be imported via
Poonch Rawlakote Road on very cheap
fright charges.
These items can be sold in the markets
of Jammu province. The cross LOC trade
is beneficial only if there items are
transported through Poonch Rawlakote
Road , because this route is directly
linking six districts on the other side of
LOG namely, Mirpur Bhimber, Koli,
Plandri Bagh and Rawlakote. On
contrary to this Srinagar — Muzzafrabad
road is linking only Muzzafrabad
district. The traders of PAK districts
Epilogue Ø
40 ×
October 2008
shall prefer to transport the go6ds from
Poonch Rawlakote Road which is only 46
kilometer long rather than Srinagar
Muzzafrabad road which is 173
kilometre long upto Muzaffarabad,
Since Jammu is industrious city and
producing most of electronics and steel
items, which can directly be supplied
through Poonch Rawlakote Road.
Because the traders of PAK all prefer to
buy these items from Jammu instead of
Kashmir and carry these goods through
Poonch Rawlakote Road except fruits
arid Handicrafts items.
After the opening of 169 Kilometer
Poonch-Srinagar Mughal road,
the traders of Kashmir valley
Rawalkote shall also prefer their business
Rs. 65 from Poonch-Rawlakote road
Rs. 475 instead of Jhelum Valley road
Rs. 275 because by this way they will
Rs. 195 be able to supply fruit directly
Rs. 120 to six districts of PaK. The other
Rs. 45 factor of trade is the similarity
Rs. 33 of language between the
Rs. 260
people of PaK and Pir Panchal
Rs. 145
region. Since 90% people on the
other sides speak Pahari and
Gojri languages therefore the traders
of PaK shall like to have their links with
predominant Pahari and Gojri speaking
traders of this side.
There is a need of completion of truck
terminal station on Poonch Rawlakote
Road at earliest; restoration of telephone
link with the marketing centers on other
side and inclusion of the representatives
of Poonch and Rajouri based Beopar
Mandals in the delegations because
ultimately at grass root level these
traders have to deal with their
counterparts on the other side. The
prospect of Poonch, Rawlakote Road for
cross LoC trade is appearing brighter than
the other routes.