Traders Protest Blocks Karakoram Highway for 20 Days

Traders in Gilgit-Baltistan have staged a sit-in protest on the Karakoram Highway (KKH) for the past 20 days, halting travel and trade between Pakistan and China through the Khunjerab Pass. They oppose recent taxation policies and demand the resumption of customs clearance at the Sost dry port.

Protesters accuse the federal government of ignoring their concerns, despite Prime Minister Shehbaz Sharif’s promise to resolve the issue. Demonstrators, including opposition leaders, highlight the constitutional and legal rights of GB residents and emphasize the severe economic impact caused by the blockade.

Traders demand immediate exemption from federal taxes, swift clearance of stuck consignments, and compensation for goods damaged due to delays. In response, the GB Chief Minister formed a committee to address the border trade tax issues and initiate dialogue with stakeholders.

Tax Benefits Available to Gilgit-Baltistan Residents

The people of Gilgit-Baltistan enjoy several tax-related benefits under special constitutional arrangements. The region remains outside the formal tax jurisdiction of Pakistan’s Federal Board of Revenue (FBR), which exempts residents from income tax, sales tax, and customs duties on locally consumed goods. Traders operating within GB benefit from relaxed import regulations and reduced tariffs on cross-border trade through Khunjerab Pass. These exemptions aim to support economic development in the region and compensate for its unique administrative status.

Government Facilities Extended to GB

• Subsidized Wheat: Authorities provide wheat at reduced rates to ensure food security.
• Healthcare Support: Federal funding strengthens hospitals and emergency services across GB.
• Education Access: Students receive scholarships and reserved seats in national universities.
• Infrastructure Projects: The government invests in roads, bridges, and energy development.
• Tourism Promotion: Campaigns and festivals boost local tourism and cultural heritage.
• Disaster Relief: GB receives priority assistance during natural calamities.
• Digital Connectivity: Telecom expansion improves mobile and internet access in remote areas.

As the protest continues, stakeholders urge the government to take swift action and restore trade activity on this vital route. The resolution of these issues remains critical for the economic stability of Gilgit-Baltistan and its role in regional commerce.