Traders End 68-Day Sit-In at Pak
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After 68 days of protest at Sost Dry Port, traders in Gilgit-Baltistan have ended their sit-in following a tax exemption deal with the federal government, paving the way for the resumption of trade and tourism between Pakistan and China.
Historic Protest Ends at Sost Dry Port
Trade and tourism between Pakistan and China have finally resumed after traders ended their 68-day-long sit-in at Sost Dry Port in Gilgit-Baltistan. The protest, which halted commercial activity and cross-border traffic on the Karakoram Highway, concluded after successful negotiations with the federal government.
Background of the Protest
- The sit-in was launched by the Tajir Ittehad Action Committee and the Gilgit-Baltistan Supreme Council.
- Traders protested against the imposition of federal taxes in G-B, a region without representation in Pakistan’s parliament.
- The strike paralyzed trade, stranded passengers, and blocked goods worth millions of dollars.
Key Terms of the Agreement
The agreement, hailed as a “historic day” by local traders, includes significant tax exemptions for Gilgit-Baltistan:
| Policy Feature | Details |
|---|---|
| Taxes Exempted | Sales Tax, Income Tax, Federal Excise Duty |
| Scope of Exemption | Goods imported through Sost Dry Port for local consumption |
| Eligible Traders | Companies owned by G-B residents, authorized by G-B government |
| Annual Cap | Rs. 4 billion (first-come, first-served basis) |
| Review Cycle | Every two years |
| Implementation | FBR to issue SRO within 30 days |
| Transparency | Exemption details to be published on FBR website |
Immediate Relief Measures
- Around 300 containers of essential goods stuck at the border will be cleared within two days.
- The G-B government will appoint a focal body to oversee the process.
- Traders have warned that if the SRO is delayed, protests could resume.
Wider Demands and Grievances
The protest also reflected broader demands, including:
- Declaring Gilgit-Baltistan a tax-free zone.
- Having the G-B Ministry of Trade regulate commerce instead of the FBR.
- Increased investment of revenues into local infrastructure and development.
Political and Economic Impact
This sit-in, one of the longest in G-B’s recent history, highlighted:
- The constitutional ambiguity of Gilgit-Baltistan within Pakistan.
- The challenge of balancing local rights and international trade commitments with China.
- The growing power of alliances like the Tajir Ittehad Action Committee and G-B Supreme Council, which united business groups, political parties, and religious organizations.
Conclusion
The end of the 68-day sit-in marks a major victory for traders in Gilgit-Baltistan and a step towards resolving long-standing disputes over taxation and representation. While the deal provides immediate relief through tax exemptions and clearance of goods, it also sets the stage for continued debate over G-B’s constitutional status and economic future.
Trade with China has now resumed, but the situation remains sensitive. Any delay in implementation could reignite tensions in this strategically crucial region.
