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This study aims to explore the issues and challenges to the Cross LoC Trade which is a good gesticulation as a part of CMBs in consolidating the relations between the people living on both sides of divided Kashmir. The traders and business community across LoC have reinvigorated this initiative since its commencement as they have been dynamically involved to conduct this trade. This is the main reason that despite all the hurdles, the volume of this trade is constantly increasing. However, the local community is apathetic in this trade as goods coming from other part of LoC reach straight to the Pakistani markets through Azad Kashmir and then after repacking, these items once again reach the local markets in Azad Kashmir, making the goods is expansive and not expedient for the local peoples in Azad Kashmir. On the other hand, the Cross LoC trade has been very supportive in reducing tensions between both the traditional contenders (Indian and Pakistan) as the number of firing incidents across LoC have been greatly reduced since its derivation. Despite the success, there are certain concerns which need to be addressed immediately otherwise the future of Cross LoC trade in the existing environment looks obscure.