JAMMU : New Delhi failed to persuade Islamabad to set up banking facilities for the cross LoC trade, which is presently being carried on a barter system. According to Jammu and Kashmir  Economic Survey 2013-14, which was tabled during the ongoing Budget session in Jammu, the representatives of the RBI made a presentation on the proposed banking mechanism in the Joint Working Group Meeting. The report said India had made a lot of effort to persuade the Pakistani delegation on the issue for the cross-LoC trade considering the significant increase in the volume of trade across Jammu and Kashmir and Azad Kashmir.

Cross-LoC trade in not an international trade and presently, 21 items are listed as permissible for trading between Azad Kashmir and Jammu and Kashmir.