Trade and tourism between Pakistan and China resumed after traders called off their 68-day sit-in at Sost Dry Port on Saturday. The sit-in, which had disrupted the local economy and cross-border movement for months, ended following negotiations with federal government representatives.
The sit-in was jointly organised by the Tajir Ittehad Action Committee and the Gilgit-Baltistan Supreme Council. It began in protest against the imposition of federal taxes in G-B, a region that lacks constitutional representation in Pakistan’s parliament. Traders argued that the taxation was unlawful.
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The demonstration had brought commercial traffic on the Karakoram Highway to a standstill, stranding hundreds of passengers and disrupting millions of dollars in bilateral trade.
Speaking to reporters, Ishfaq Ahmed, the G-B chapter president of chambers of commerce and industries, described it as a “historic day” as the government had accepted a few demands. “It’s a big achievement, we must acknowledge it,” said Ahmed.
The core of the agreement grants Gilgit-Baltistan a major tax exemption. According to the deal, Sales Tax, Income Tax, and Federal Excise Duty will not be collected on goods imported through the Sost Dry Port, provided they are for local consumption within G-B. To qualify, the importing companies must be owned by residents and authorised by the G-B government.
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The tax relief scheme includes several safeguards. The total annual exemption has been capped at Rs. 4 billion, managed on a first-come, first-served basis. The policy will be reviewed every two years.
The Federal Board of Revenue (FBR) will issue a Statutory Regulatory Order (SRO) within 30 days. The G-B government will appoint a focal body to manage the process transparently, with exemption details published on the FBR website.
For immediate action, the government will prioritise clearing approximately 300 containers of essential goods that have been stuck at Sost Dry Port. Rehan Shah of PML-N stated that all stranded containers should be cleared within two days.
“If the SRO is delayed or our demands are ignored, we will reconvene to decide our next course of action,” said Shah.
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The protest highlighted wider grievances in the region. The initial demands included declaring all of G-B a tax-free zone, having the GB Ministry of Trade regulate commerce instead of the FBR, and investing revenue in local infrastructure.
The movement gained significant strength from a broad-based alliance. Tajir Ittehad Action Committee, formed two years ago, reached out to various groups after failed talks with governments. This led to the creation of the G-B Supreme Council, which united business chambers, religious groups, and political parties from across the region.
The protest, one of the longest in G-B’s recent history, has underscored the region’s complex constitutional status and the challenge of balancing local demands with international commitments to China.
