FOR over 40 days, the traders of Sost in Gilgit-Baltistan have been protesting to press the federal government to meet their demands. These largely centre on the imposition of federal taxes on the region, as well as regulation of trade with China. Several parts of GB observed a strike on Friday in solidarity with the traders, reflecting support from across the region for the demands. People of the mountainous region often take to the streets to highlight their issues, and more often than not, these demonstrations are peaceful. In the past, the region has witnessed large protests against excessive load-shedding as well as an increase in the subsidised wheat price. During the ongoing protest, while commercial traffic is blocked, the demonstrators have allowed passengers to travel between Pakistan and China. Unfortunately, in Pakistan peaceful protesters are usually met with indifference by the state, while those who resort to violent tactics are mollified and indulged by the government.

The GB traders want the centre to declare the region a ‘non-tariff’ area, exempted from federal sales and income tax on goods imported from China. They also want the clearance of goods held up at Sost for months, as well as the withdrawal of cases against traders. The GB cabinet has endorsed their demands. The issue of federal taxes imposed on GB is not a new one, as there is widespread support across the territory for the ‘no taxation without representation’ demand. Islamabad, on the other hand, is hesitant to give GB provincial status until the Kashmir dispute with India is settled. The committee recently formed by the prime minister to look into the traders’ demands needs to come up with a fair solution in consultation with GB’s elected representatives. While the locals’ demand not to pay federal taxes without having a voice in national affairs is rational, in these times of economic strain, a just solution should be explored that balances regional demands with the fiscal needs of the state, while also not harming Pakistan’s case vis-à-vis the Kashmir dispute. Taxes, if applied, should not be excessive, and the money collected must be spent on the welfare of the region. Agriculture, trade and tourism are the main economic sectors in GB, therefore taxation should be proportionate, while the state must endeavour to create more economic opportunities in the region.

Published in Dawn, August 31st, 2025