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Pakistan’s failure deepens PoGB crisis as traders’ protest paralyses China trade

Traders in Pakistan-Occupied Gilgit-Baltistan Push for Tax-Free Status Amid Ongoing Protests

Traders in Pakistan-occupied Gilgit-Baltistan (PoGB) are digging in their heels, demanding a tax-free zone to ease their business woes. On Tuesday, a key committee set up by Prime Minister Shehbaz Sharif couldn’t reach an agreement on these demands, pushing the talks to Wednesday. This comes as protests at the Sost border with China enter their 50th day, blocking vital trade routes.

The 22-member committee, led by Federal Energy Minister Awais Leghari, held its fourth meeting in Islamabad. Big names like senior ministers Rana Sanaullah and Amir Muqam, Attorney General Mansoor Usman Awan, Senator Saleem Mandviwalla, PoGB Chief Minister Haji Gulbar Khan, and PoGB Assembly member Amjad Hussain Advocate attended. Representatives from bodies like the National Logistics Corporation (NLC), Federal Board of Revenue (FBR), and Inter-Services Intelligence (ISI) also joined in.

PoGB traders argue that their region counts as a non-tariff area, so federal taxes feel unfair. They want PoGB declared a full tax-free zone and permission to import unlimited goods from China for local use. But not everyone agrees. Senator Mandviwalla shot down the idea of unrestricted imports, and others worried about skipping income tax and other federal duties for locals.

Adding to the tension, lawmakers demanded quick clearance for consignments stuck at Sost Dry Port for almost 10 months. Traders say they’re losing billions in this hold-up. The PoGB Cabinet had earlier pitched ideas after talking to protesters: imports for local use need PoGB government approval, perishable goods get relief under the PM’s amnesty scheme, and local traders skip federal taxes on PoGB sales—but duties stay for goods shipped out.

Things heated up in the PoGB Assembly too. On Monday, opposition members walked out when their tax-free resolution didn’t get tabled. Speaker Nazir Ahmed blamed a lack of quorum.

On the ground, the Sost protests have shut down the Karakoram Highway, stopping all cross-border trade with China. Immigration offices are closed, leaving tourists, Chinese workers, and Pakistani students stuck—many of them heading to universities in China. As the standoff drags on, PoGB traders’ demands for tax relief and smoother imports highlight the growing frustration in this strategic region.



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