GILGIT: The prime minister’s 22-member committee failed on Tuesday to reach consensus on recommendations for resolving grievances of Gilgit-Baltistan’s traders, with the matter deferred to another meeting scheduled for Wednesday.
The committee, formed by Prime Minister Shehbaz Sharif to address concerns over taxes and clearance of consignments imported from China via the Khunjerab Pass, met in Islamabad under the chairmanship of Federal Energy Minister Awais Leghari. It was the body’s fourth meeting.
The session was attended by federal ministers Rana Sanaullah and Amir Muqam, Attorney General Mansoor Usman Awan, Senator Saleem Mandviwalla, GB Chief Minister Haji Gulbar Khan, GB Assembly member Amjad Hussain Advocate, and representatives from the NLC, FBR, MI, IB, FIA and ISI.
Tax-free zone
Sources said the GB chief minister and Amjad Hussain Advocate pressed for declaring Gilgit-Baltistan a tax-free zone and allowing residents to import unlimited items from China for local consumption. Mr Khan argued that as GB was a non-tariff area, the collection of federal taxes was unjustified.
Border remains blocked as traders’ sit-in at Sost continues for 50th day
However, Senator Mandviwalla opposed the proposal for unlimited imports, while objections were also raised over the mechanism to exempt GB residents from income tax and other federal levies.
Mr Hussain told Dawn that committee members from GB also sought urgent clearance of consignments stuck at Sost Dry Port for the past 10 months, which have caused traders billions in losses.
The meeting ended in deadlock over the mechanism for imports and exemptions. Sources said the committee would reconvene in Islamabad on Wednesday (today) to try to bridge differences and present unified recommendations to the prime minister.
Earlier, the GB cabinet, after consultations with protesting traders, submitted proposals recommending that prior permission from the GB government be mandatory for imports intended for local consumption. It also called for reassessment of perishable goods stuck at Sost to allow depreciation relief under the prime minister’s amnesty scheme.
The cabinet also suggested exempting local traders from all federal taxes — including income tax, sales tax, federal excise duty and regulatory duty — on goods sold in GB markets, but imposing full duties and taxes on consignments transported outside the region.
Meanwhile, opposition members in the GB Assembly staged a walkout on Monday after their resolution on traders’ issues was not tabled despite being on the agenda. The resolution demanded that GB be declared a tax-free zone. Speaker Nazir Ahmed said the quorum had not been met, prompting members to stage a walkout in protest.
Sit-in enters 50th day
At Sost, traders’ sit-in entered its 50th consecutive day on Monday, blocking the Karakoram Highway and suspending cross-border trade with China. Immigration offices and border entry and exit points also remained closed.
The blockade has stranded hundreds, including Chinese nationals, foreign tourists and Pakistani students enrolled in Chinese universities. Although immigration was briefly opened on Thursday, it was closed again the next day.
Published in Dawn, September 17th, 2025
