The Trade Facilitation Center (TFC) in Salamabad, located in the border town of Uri, which previously facilitated duty-free barter trade between Jammu and Kashmir (J&K) and Pakistan-occupied Kashmir (PoK), will now function as a tourist attraction. This decision concludes speculation regarding the resumption of trade along this route.
A high-ranking official from the tourism department confirmed that the government has permitted the department to use the TFC in the Baramulla district for tourism-related activities. The official noted that the main objective is to transform Salamabad into an entry point for a broader tourist circuit along the Uri border. Emphasis will be placed on 'regulated, responsible, and curated border tourism,' ensuring full compliance with safety requirements and administrative norms.
The TFC in Salamabad, situated approximately 100 km north of Srinagar, was originally established for cross-border trade across the Line of Control. After the suspension of such trade in 2019, the facility remained unused for its original purpose.
Following improved relations in 2008, India and Pakistan agreed to allow cross-border trade and travel across the Line of Control subject to certain conditions under Confidence Building Measures (CBMs). However, in April 2019, the Center suspended operations, stating that the trade routes were being used for the illicit smuggling of weapons, drugs, and counterfeit currency.
At the time, a statement from the Ministry of Home Affairs (MHA) indicated that current NIA investigations had found that a significant number of participants in cross-Line of Control trade operations were linked to banned terrorist organizations involved in inciting terrorism/separatism. The statement also mentioned that some individuals who crossed the border and joined terrorist groups were establishing trading firms in Pakistan.
Transport connectivity (bus service) and trade across the Line of Control were considered among the most significant confidence-building measures between the neighboring countries in recent decades. At that time, Prime Minister Manmohan Singh launched 'Karwan-e-Aman' (Caravan of Peace)—the first bus service across the Line of Control connecting Srinagar with Muzaffarabad in PoK, on April 7, 2005.
Barter trade across the Line of Control began on October 21, 2008, in two directions: Salamabad (Uri) – Muzaffarabad (PoK) and Poonch – Rawalakot (PoK). Traders on both sides were allowed to exchange 21 mutually agreed-upon goods.
TFCs were built on both sides at a distance of 5 km inside the Line of Control. In J&K, one TFC was established in Salamabad, and another in Chakan da Bagh in the Poonch district of Jammu. Trade was permitted on both routes four days a week.