Daily Times - Leading News Resource of Pakistan
NEW DELHI: India and Pakistan are set to monetise barter trade across the Line of Control (LoC in disputed Kashmir) between the two Kashmirs to stop earnings for terror funding or hawala operations, Indian Express news paper reported.
Early this month, New Delhi sent a proposal to Islamabad identifying Jammu and Kashmir (J&K) Bank as the financial intermediary from Indian side to handle remittances through a nostro account, so as to track who is paying and who is taking the goods.
Since monetising cross LoC trade would involve both Indian rupees and Pakistani rupees, Islamabad has to mandate a bank of Pakistan with a branch in Pakistan Kashmir, to maintain a similar account.
The J&K Bank would open a Pakistani-rupee-denominated account in Islamabad-designated bank and instruct traders there to settle transactions with it.
In return, Pakistan bank would open an Indian-rupee account with J&K Bank for similar transactions.
NEW DELHI: India and Pakistan are set to monetise barter trade across the Line of Control (LoC in disputed Kashmir) between the two Kashmirs to stop earnings for terror funding or hawala operations, Indian Express news paper reported.
Early this month, New Delhi sent a proposal to Islamabad identifying Jammu and Kashmir (J&K) Bank as the financial intermediary from Indian side to handle remittances through a nostro account, so as to track who is paying and who is taking the goods.
Since monetising cross LoC trade would involve both Indian rupees and Pakistani rupees, Islamabad has to mandate a bank of Pakistan with a branch in Pakistan Kashmir, to maintain a similar account.
The J&K Bank would open a Pakistani-rupee-denominated account in Islamabad-designated bank and instruct traders there to settle transactions with it.
In return, Pakistan bank would open an Indian-rupee account with J&K Bank for similar transactions.
