The Chief Minister of Jammu and Kashmir, Ghulam Nabi Azad, on May 29, 2008 blamed the Pakistan Government for delaying the cross-border trade between Muzzafarabad and Srinagar. According to him, all the formalities have been completed on the Indian side but it is still waiting for the Pakistan officials to give a go-ahead for the same.

 

He said that as far as the Line of Control (LoC) trade is concerned India is all set; it is actually now waiting for Pakistan who at the moment does not seem quite eager to go ahead with this. Earlier in the year 2005, both India and Pakistan had decided mutually, to introduce a truck service on the Srinagar - Muzzafarabad road, five months after the historic Srinagar - Muzzafarabad bus service started on this very route.

 

This trade agreement would in-turn benefit both the countries because it will facilitate trade ties between both India and Pakistan by allowing free movement of goods and services without enforcing any kind of duty or tax on it. Meanwhile, the Indian Government had even sent a list containing 14 items to Pakistan for approval, out of which the Pakistan officials approved Kashmiri carpets, saffron, rugs, shawls, fruits, flowers, silk products for trade purposes. At present, the J&K exports various horticulture products whose estimated value is worth Rs.20 billion while the carpets and other handicraft products worth Rs.7 billion of India's total exports.