GILGIT: Pakistan-China traders on Monday launched a protest against the suspension of border trade via the Khunjerab Pass, blaming the federal government’s inaction over unresolved tax-related issues that have inflicted heavy losses on importers and exporters over the past year.

Organised by the Pak-China Tajeer Etihad Action Committee — a coalition representing Gilgit-Baltistan’s (GB) importers, exporters, small traders, customs clearing agents, and local chambers of commerce — the protestors announced a sit-in at the Sost

Dry Port gate, vowing to block all trade activities until their demands are met.

Protesters called for the immediate clearance of Chinese consignments that have been stranded at Sost Dry Port for nearly a year, exemption from income and sales taxes for GB residents, and the provision of special incentives under the 1985 Pakistan-China border agreement. They also demanded a one-time amnesty scheme for the clearance of the stuck consignments.

On Sunday, police arrested three business leaders — Abbas Mir, Farman Tajik, and Ali Nazar — in Aliabad and Sost, prompting further unrest. The detained were released after protesters blocked the Karakoram Highway (KKH) at Murtazabad. A large rally later marched on the KKH in Sost and staged a sit-in, blocking access to the Sost Dry Port for an indefinite period.

Protesters said that around 60pc of GB’s population depends on cross-border trade with China through the Khunjerab Pass — a centuries-old commercial route. They alleged that since December last year, new trade policies have disrupted this lifeline, causing widespread economic hardship.

“Billions of rupees worth of goods have remained stranded at Sost Dry Port for the past year. Many items have expired, and traders are burdened with escalating port charges and other expenses,” the protestors said.

They argued that GB residents are constitutionally exempt from federal taxes due to the region’s disputed status, and that imposing such taxes would violate the principle of “no taxation without representation.” They also called for the withdrawal of cases registered against local traders.

The protesters criticised the Federal Board of Revenue (FBR), blaming its policies for triggering an economic crisis in the region. They warned that the exploitation of GB’s people would no longer be tolerated and vowed to expand the protest movement to other areas if their demands remain unmet.

Thousands of people — including transporters, hotel owners, shopkeepers, labourers, and customs agents — have been economically paralysed for the past eight months.

With no industrial base or significant private sector employment, trade with China remains GB’s primary economic activity.

The traders have also secured support from local religious and political leaders, and a joint committee of various organisations has been formed to coordinate and expand the protest.

Published in Dawn, July 22nd, 2025