Pakistan Tax Exemptions for GB Traders – Ongoing Dispute
- A sit-in protest by traders in Gilgit-Baltistan entered its 50th consecutive day on Monday, September 16, 2025, effectively blocking the Karakoram Highway and halting cross-border trade with China.
- The blockade has stranded hundreds of individuals, including Chinese nationals, foreign tourists, and Pakistani students attending universities in China.
- Prime Minister Shehbaz Sharif established a 22-member committee to address the traders' grievances, specifically concerning taxes and the clearance of consignments imported from China through the Khunjerab Pass.
Gilgit-Baltistan Traders’ Protest Disrupts China Trade, Enters 50th Day
Table of Contents
Protest and Border Closure
A sit-in protest by traders in Gilgit-Baltistan entered its 50th consecutive day on Monday, September 16, 2025, effectively blocking the Karakoram Highway and halting cross-border trade with China. Immigration offices and border entry/exit points remain closed as of September 17, 2025 Dawn.
The blockade has stranded hundreds of individuals, including Chinese nationals, foreign tourists, and Pakistani students attending universities in China. While immigration services were briefly reinstated on thursday, September 12, 2025, they were subsequently suspended the following day.
government Response and Negotiations
Prime Minister Shehbaz Sharif established a 22-member committee to address the traders’ grievances, specifically concerning taxes and the clearance of consignments imported from China through the Khunjerab Pass. The committee convened its fourth meeting on Tuesday, September 16, 2025, in Islamabad, chaired by Federal Energy minister Awais Leghari Dawn.
Attendees included Federal Ministers Rana Sanaullah and amir Muqam, Attorney General Mansoor Usman Awan, Senator Saleem Mandviwalla, and Gilgit-Baltistan Chief Minister haji Gulbar khan, along with GB assembly member Amjad Hussain Advocate. Despite the meeting, the committee failed to reach a consensus on recommendations for resolving the dispute, deferring further discussion to a meeting scheduled for Wednesday, September 17, 2025.
impact and Affected parties
The prolonged closure of the Karakoram highway and border crossings has notable economic repercussions. Cross-border trade between pakistan and China, vital for both economies, is entirely suspended.The disruption impacts businesses reliant on timely imports and exports, potentially leading to financial losses and supply chain issues.
Beyond economic consequences, the blockade creates hardship for individuals stranded on both sides of the border. Chinese citizens, tourists, and Pakistani students face uncertainty and logistical challenges. The intermittent opening and closing of immigration services exacerbate the situation, creating confusion and hindering travel plans.
| Affected Group | Impact |
|---|---|
| Traders (Gilgit-baltistan) | Protesting tax policies and import clearance procedures. |
| Pakistani Businesses | Disrupted supply chains, potential financial losses. |
| Chinese Businesses | Halted exports to Pakistan, potential financial losses. |
| Chinese Nationals | Stranded in Pakistan,travel disruptions. |
| Foreign Tourists | Stranded in Pakistan, travel disruptions. |
| Pakistani Students | Difficulty returning to Chinese universities. |