Protest on Karakoram Highway disrupts Pakistan-China trade for 20 days over illegal taxation in PoGB

PoGB [Pakistan], August 9 : The ongoing protest sit-in on Karakoram Highway (KKH) has disrupted travel and trade between Pakistan and China via Khunjerab Pass for the 20th consecutive day, Dawn reported.

The protesters are opposing taxation policies and the suspension of customs clearance at Sost dry port, which has severely affected local commerce and cross-border trade.

Organisers of the protest have announced plans to escalate their movement, accusing the government of a lack of seriousness despite Prime Minister Shehbaz Sharif's recent promise to resolve the matter and grant a one-time amnesty for consignments stuck at the port. Traders have also criticised government authorities for their inaction.

At a press conference in Sost town near Khunjerab Pass, members of the Tajir Etihad Action Committee condemned the government's delaying tactics, Dawn added.

The protesters maintained that their peaceful demonstration is aimed at defending the constitutional and legal rights of residents of Pakistan-occupied Gilgit-Baltistan (PoGB). They also highlighted the broad regional support they have received from political, religious, trade, and youth organisations.

A demonstrator, Abbas Mir, stated, "Taxes cannot be collected from the people of PoGB until representation in the Parliament of Pakistan is provided." He argued that collecting income tax, sales tax, and other federal taxes from PoGB residents is illegal, as the disputed status of PoGB renders the Federal Board of Revenue's (FBR) operations unconstitutional.

The traders further claimed that 280 consignments imported from PoGB have been held at Sost dry port for over a year, with billions of rupees' worth of goods spoiled or damaged due to recent rains.

Their demands include exemption from income tax, sales tax, and other taxes on Chinese imports for PoGB residents; clearance of the held consignments; and compensation for damaged goods.

Opposition member Jawed Ali Manwa of the PoGB Assembly declared, "Tax imposition in PoGB is illegal," emphasising that free trade with China is a fundamental right for the local people. He warned that unfair FBR policies risk deepening alienation and weakening the federation.

A protester added that thousands of people have suffered billions of rupees in losses and unemployment over the past year due to illegal taxation. The organisers reiterated that their sit-in will continue until their legal demands are fully met.

They also warned that the protest could escalate further if their grievances remain unaddressed, noting that many tourists have been stranded in Sost due to the ongoing blockade.

Meanwhile, PoGB Chief Minister Haji Gulbar Khan has formed a 20-member committee to resolve border trade tax issues. The committee includes PoGB Home Minister Shams Lone, Assembly member Amjad Hussain Advocate, Ayub Waziri, other stakeholders, and federal government officials, Dawn reported.

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