The weekly cross-LoC bus service was suspended on Monday.
"The cross-LoC (Line of Control) bus service was suspended in view of the prevailing law and order situation," Poonch District Development Commissioner Rahul Yadav said.
The passengers were accordingly informed well in time about the suspension of the service, he said.
On the cross-Loc trade, Yadav said it will not take place on Tuesday due to public holiday on account of Guru Ravi Das's birthday.
"The decision to carry on the trade between the two sides will be taken on Wednesday after a review of the situation," he said.
An official said cross-LoC bus service between Srinagar and Muzaffarabad was also suspended today.
He said decision on allowing cross-LoC trade would be taken tomorrow morning.
The cross-LoC trade takes place from Tuesday to Friday every week.
Billed as the biggest confidence building measure, the bus service was started on the Srinagar-Muzaffarabad route in Kashmir on April 7, 2005 and the Poonch-Rawalakot route in the Jammu region on June 20, 2006, to facilitate easier trade and travel between the divided families of Jammu and Kashmir and PaK.
The trade, which works on barter system, between the divided parts started in October 2008.