By Jamil Nagri

Copyright dawn

GILGIT: Trade and travel operation between Pakistan and China through the Khunjerab Pass has reopened as traders called off the 68-day-long protest sit-in staged in Sost, blocking the Karakoram Highway (KKH), on Saturday after an agreement with the federal government.

Gilgit-Baltistan traders had been staging a sit-in to press the authorities for exemption of GB people from paying sales tax, income tax, and other federal taxes on imported items from China through the Khunjerab Pass, clearance of stuck consignments at Sost Dry Port, and withdrawal of cases.

Negotiations held in Islamabad between GB traders’ representatives, including GB Supreme Council Chairman Ashfaq Ahmed, Abbas Ali, Kamran Ghazi, Maulana Sharafaruddin, Advocate Saleemuddin, Ebad Nagari, and Gulsher Khan, and the committee formed by Prime Minister Shehbaz Sharif to address concerns.

The PM’s committee, headed by federal Minister for Energy Awais Leghari, comprised federal ministers Rana Sanaullah and Amir Muqam, Attorney General for Pakistan Mansoor Usman Awan, Senator Saleem Mandviwalla, GB Chief Minister Haji Gulbar Khan, GB assembly lawmaker Advocate Amjad Hussain, and representatives from the NLC and FBR besides security agencies.

Under deal with protesting traders, federal govt agrees on Rs4bn tax exemption on goods imported for GB’s local consumption

After week-long negotiations in Islamabad, the traders’ representatives and the committee reached an agreement.

Local consumption

Under the deal, the federal government exempted sales tax, income tax, and federal excise duty on GB people on items imported from China through the Khunjerab Pass for local consumption. The exemptions will be capped at Rs4 billion annually and reviewed every two years. The agreement stated that any attempt to smuggle exempted goods outside GB will lead to partial or complete withdrawal of the concession.

It was also agreed to expedite tribunal orders regarding pending consignments at Sost Dry Port. The terminal operator will consider waivers on demurrage and port charges. In the agreement, it was agreed that the federal government will issue an SRO on tax exemptions, and a mechanism will be devised. Traders had agreed to immediately wind up their protest. Customs will continue to enforce compliance at Sost as it does at other ports.

The federal and GB governments also agreed to work on developing border areas, particularly in Gojal, and to consider measures to boost GB’s exports to China.

GB traders’ representatives on Saturday announced calling off the over two-month-long protest sit-in. Addressing traders, GB Supreme Council members announced that Gilgit-Baltistan had been declared a non-tariff area. Ashfaq Ahmed, GB Supreme Council Chairman, who is also the President of the Gilgit Chamber of Commerce, termed it a success. He said the achievement was made possible by unity among GB’s political, social, and business leadership.

Kausar Hussain, a GB Supreme Council member, said that taxes imposed in GB following the extension of the Customs Act to GB had finally been rolled back. Kamran Ghazi, another member of the negotiating team, outlined the four-point agenda pursued in Islamabad: tax exemptions, amnesty for stuck consignments, establishment of export facilities, and allocation of funds for border area development. He said the federal government had agreed to allocate a portion of collections for Gojal through the federal finance division, to be reflected in the GB budget.

GB traders’ representatives demanded implementation of the agreement and called off the protest. Pakistan Customs officials said that after the protest was called off, trade operations started between Pakistan and China through the Khunjerab Pass.

An official said trade activities at Sost Dry Port resumed, transportation between Pakistan and China started, facilitating travel of a large number of stranded passengers.

Published in Dawn, September 29th, 2025