June 04, 2025
By Shereen Karim
GILGIT
For six consecutive days, the vital Pakistan-China trade route has remained completely shut, as the trading community continues its fierce protest against new taxes imposed by the government. The ongoing demonstration has brought cross-border commerce to a complete standstill, during what is traditionally the peak tourism season.
Traders argue that local business has already suffered severely since the launch of the China-Pakistan Economic Corridor (CPEC), and the additional tax burden now threatens to completely destroy their livelihoods.
The protesters are demanding that border trade be declared a tax-free zone and that local traders be provided with better facilities. They have vowed to continue their demonstration until their demands are met.
‘Ruthless exploitation’ at Sust Border
Sadaqat Hussain, President of Nagar Chamber of Commerce, describes the situation as systematic exploitation.
“The ruthless exploitation of traders has been ongoing at Sust border for the past year,” he said. “Fed up with unfair taxes, traders have been forced to stage this sit-in. The government blocked us from going to Sust, which compelled us to protest on the streets. Our fundamental demand is that goods stuck in Sust be cleared immediately and unnecessary taxes be eliminated.”
The protest, which began as a planned peaceful march, was transformed into a sit-in after local administration prevented traders from reaching their destination.
Saqib Hassan, a local trader, explained the circumstances that led to the current standoff.
“We fully support the Traders Action Committee protest. We had called for only a peaceful march, but the local administration blocked it and turned it into a sit-in. Our only wish was to reach Sust peacefully.”
Tourism season severely impacted
The timing of the protest could not have been worse, as it coincided with the peak tourism season. The route closure has created severe difficulties for tourists and travelers, with the vital corridor remaining blocked for the sixth consecutive day. Despite harsh winter conditions and continuous rainfall, the trader community has maintained their sit-in.
But, the President of the Baggage Association, emphasises their determination.
“As far as the protest is concerned, until our Charter of Demands is fully implemented, our protest will continue unabated,” said Adnan. “We will remain here until our legitimate demands are accepted.”
GB govt’s dilemma
Javed Hussain, another trader, clarified that the sit-in was not their original intention.
“Actually, we had no plan for a sit-in. Our sole desire was simply to reach Sust,” he said. “But the district administration stopped us and we were forced into this protest. The failed policies of the FBR over the past year have brought us to this point. We have a clear three-point agenda: immediate clearance of goods stuck in Sust according to policy.”
The Gilgit Baltistan government maintains that the traders’ protest concerns FBR-related issues, which fall under federal jurisdiction. However, the Gilgit-Baltistan government is providing full cooperation in resolving the traders’ problems.
Muhammad Ali Qaid, Special Coordinator to the Chief Minister of Gilgit-Baltistan, acknowledged the complexity of the situation. “This sit-in is based entirely on matters related to the FBR. The GB government has always provided every possible facility to traders. Their complete agenda has been included in the Apex Committee. However, due to the unavailability of flights, the meeting could not take place. God willing, a meeting will be held soon and recommendations will be sent to the federal government. We also understand that injustice is being done to GB’s traders.”
Economic concerns mount
The prolonged closure is raising serious concerns about the economic impact on the region, particularly given that this is the peak season for tourism – one of the area’s major revenue sources. Local businesses dependent on cross-border trade are facing mounting losses with each passing day.
The traders’ demands extend beyond immediate relief, calling for systematic changes to tax policies that they claim are strangling local commerce. They argue that instead of imposing additional taxes, the government should provide tax relief to promote local trade.
As the standoff enters its seventh day, both sides appear entrenched in their positions. The trading community has made it clear that they will not end their protest until concrete action is taken on their demands, while government officials cite federal jurisdiction limitations in addressing FBR-related issues.
The closure of this crucial trade artery during peak season highlights the broader challenges facing Pakistan’s border trade policies and their impact on local communities in the northern regions.
The traders’ strong demand to the government is that their issues be resolved on a priority basis with permanent solutions. Instead of additional taxes, they should be provided with tax relief to promote local trade.