Salamabad Trade Centre Enters a New Era as J&K Turns Focus to Border Tourism
The Jammu and Kashmir government has formally transferred the Trade Facilitation Centre (TFC) at Salamabad in Uri to the Tourism Department, bringing a new chapter to a facility that once played an important role in cross-Line of Control (LoC) trade. The centre, which has remained largely unused since the suspension of trade in 2019, is now being prepared for development as a border tourism hub.
From Cross-LoC Trade to Tourism
Cross-LoC trade between the two sides of the erstwhile Jammu and Kashmir began on October 21, 2008, as a confidence-building measure between India and Pakistan. Trade was conducted through two centres—Salamabad in Uri and Chakan-da-Bagh in Poonch—and followed a duty-free, cashless barter system in which approved goods were exchanged rather than traded through conventional banking channels.
The Salamabad centre was located along the Srinagar-Muzaffarabad route and became part of a broader effort to facilitate contact and economic exchanges across the LoC. The initiative followed the launch of the Srinagar-Muzaffarabad bus service in 2005, which had been established to reconnect families separated by the LoC.
Why the Trade Was Suspended
The Ministry of Home Affairs suspended cross-LoC trade at Salamabad and Chakan-da-Bagh from April 19, 2019. The government cited reports that the routes were being misused for activities including the movement of narcotics, illegal weapons and counterfeit currency. It also referred to investigations indicating that some trading concerns had alleged links with banned terrorist organisations.
The suspension effectively brought the cross-LoC trading system to a halt. Subsequent investigations also examined alleged financial irregularities involving some traders. In 2020, the Income Tax Department reported searches involving individuals associated with cross-LoC trade and said that evidence of tax evasion and unaccounted transactions had been detected in certain cases.
Salamabad Gets a New Purpose
After years of remaining largely dormant, the Salamabad facility is now being placed under the Tourism Department. Officials have said that the existing infrastructure will be assessed and adapted for tourism-related activities, including visitor amenities and access to designated viewpoints around the LoC.
The centre already has facilities that could support this transition, including accommodation, a cafeteria, a park and a viewpoint. Instead of allowing the infrastructure to remain underused, the government plans to explore ways of integrating it into the wider tourism network of the Uri sector.
Border Tourism and Local Opportunities
The move also places greater emphasis on the tourism potential of Uri and surrounding border areas. Officials have said that the new tourism initiative could create employment opportunities for local youth and support economic activity in villages situated along the LoC. Plans are expected to include coordination with relevant agencies to facilitate visitor movement and develop suitable tourism facilities.
The area has both scenic and historical significance. Among the prominent locations nearby is Aman Setu at Kaman, which became associated with the Srinagar-Muzaffarabad road and the movement of people across the divided regions of the erstwhile state. The location has also attracted visitors interested in experiencing the border landscape and its history.
A Shift in the Economic Role of Uri
The transformation of the Salamabad centre reflects a broader change in how the existing infrastructure can be used. A facility originally designed for regulated cross-LoC commerce is now being considered as an asset for tourism, local employment and economic activity within the Uri region.
For local communities, the proposed development could create opportunities across accommodation, food services, transportation, tourism management and other visitor-related activities. The success of the initiative, however, will depend on the restoration of existing facilities, connectivity, visitor arrangements and the development of a clear tourism plan.
The MGMM Outlook
The transformation of the Salamabad Trade Facilitation Centre from a former cross-LoC trading facility into a proposed border tourism hub represents a constructive new use of existing infrastructure in Uri. With the centre having remained largely inactive since the suspension of cross-LoC trade in 2019, its transfer to the Tourism Department creates an opportunity to develop the area around tourism, visitor facilities and local economic activity. The existing accommodation, cafeteria, park and viewpoint can provide a foundation for integrating Salamabad into the wider tourism network of North Kashmir while preserving the area's historical and strategic significance.
The proposed development could also open new livelihood opportunities for communities in and around Uri through hospitality, transportation, food services and tourism-related activities. By linking Salamabad with nearby attractions and designated LoC viewpoints, the initiative can give greater visibility to the region's natural landscape and heritage while making productive use of previously underutilised infrastructure. Its long-term impact will depend on effective restoration, connectivity, visitor management and coordinated tourism planning, but the shift provides Uri with a fresh opportunity to strengthen its tourism potential and support local economic development.
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