Srinagar, Jan 14 (IANS): The 'Carvan-e-Aman' bus service between Srinagar and Muzaffarabad operated on schedule Monday despite heightened tension between India and Pakistan. Cross-LoC trade has also continued as usual for four days last week.

Monday's Peace Bus service, which usually carries people to the 'Aman Setu' bridge in north Kashmir's Baramulla district, took three passengers back to Pakistan- administered Kashmir, after completion of their stay here. It also carried eight local people to Muzaffarabad.

The bus service is part of the confidence building measures (CBMs) between the two countries aimed at increasing people-to-people contact.

Last week, the Peace Bus service that operates between Poonch and Pakistan- administered Kashmir through Chakan da Bagh in the Jammu region was disallowed by Pakistani authorities because of tension in the area.

Pakistan had also not allowed passage of trade goods through Chakan da Bagh last week.

"Trade goods, however, were exchanged as usual between our side and Muzaffarabad during all the four scheduled days (Tuesday, Wednesday, Thursday and Friday) last week", said an official at Salamabad trade facilitation centre near Uri town in Baramulla district.

In order to bring down tension, a flag meeting between brigade commanders of the two countries is to take place Monday at Chakan da Bagh in Poonch district of Jammu region.