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Gilgit-Baltistan traders block China trade over taxes

Published on: August 2, 2025 2:47 PM

Traders in Gilgit-Baltistan (GB) continued their protest for the 24th day, blocking the trade route to China. The Karakoram Highway remains closed, stopping trade and travel. Thousands, including Chinese nationals and tourists, remain stranded due to the blockade. Protesters demand the removal of federal taxes, claiming these taxes are illegal in GB’s disputed constitutional status.

Local political, youth, and religious groups back the traders, insisting GB should be exempt from federal taxation. The protest has severely hit the local economy over the past eight months. Many transporters, hotel owners, shopkeepers, and customs agents have lost their jobs.

Ayub Waziri, GB Assembly member, said the issue impacts all residents, not just traders. He recalled that Federal Board of Revenue officials once admitted GB is a “non-tariff zone.” This acknowledgment supports the protesters’ claim that federal taxes in GB are unlawful.

The protest gained momentum recently, with hundreds joining the blockade on Friday. Supporters voiced concerns over economic losses and delays at the Sost Dry Port customs clearance. The shutdown disrupts Pakistan-China trade, critical to both countries’ economies.

As the blockade continues, the region’s economic and social challenges deepen. Protesters urge the government to address tax policies and recognize GB’s special status to end the crisis.

Filed Under: Business Tagged With: blocking the trade route, China, Gilgit-Baltistan (GB), Latest, removal of federal taxes, traders

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