Protest Over Federal Taxes Shuts Down Pakistan-China Trade Route
For the 23rd consecutive day, traders in Pakistan-occupied Gilgit-Baltistan (PoGB) have blocked the Karakoram Highway, a vital link for Pakistan-China trade. The blockade is a response to what locals call “illegal federal taxation.”
According to Dawn, the protest has brought cross-border travel and trade to a standstill. Thousands of people, including Chinese nationals and foreign tourists, remain stranded near one of South Asia’s most sensitive borders.
The core of the protest lies in the region’s disputed constitutional status. Protesters argue that PoGB is not legally part of Pakistan, and hence federal taxes have no valid ground.
“How can federal taxes be collected from people who are not constitutional citizens of Pakistan?” asked Mohammad Ishaq, one of the protest leaders.
He added, “No taxation without representation.”
Economic Fallout Hits PoGB Traders Hard
The blockade has deepened economic distress in the region. While the Karakoram Highway protest has recently gained attention, PoGB’s economy has suffered for months.
Customs agents, transporters, hotel owners, and shopkeepers report massive losses.
“Goods worth billions of rupees are stuck at Sost Dry Port,” said Ahmed Nabi, a protester.
“Some are rotting in the rain, while others have expired.”
Despite repeated calls for relief, traders accuse Pakistan Customs of selective clearance, corruption, and favouritism.
“Only a select few get fast-track clearance. This is economic exploitation,” said Javed Hussain, another organiser.
The blocked route is crucial for goods moving under the China-Pakistan Economic Corridor (CPEC), making the disruption significant for both nations.
Legal Ambiguity Fuels the Crisis
The unrest has reignited the constitutional debate over PoGB’s status. Although administered by Pakistan, Gilgit-Baltistan is not part of the country’s constitutionally defined provinces.
“Even last year, the Federal Board of Revenue admitted PoGB is a non-tariff zone,” said Ayub Waziri, a PoGB Assembly member.
“Still, taxes continue as if we’re a full province.”
Despite a committee being formed to address the issue, protesters claim no substantial dialogue or resolution has emerged.
On Friday, the protest gathered more momentum as residents from nearby areas joined in solidarity.
“This protest has awakened GB people to rise for their rights,” said Moulana Sharfuddin, leader of Tanzeem Ahl-i-Sunnat wal Jamat (PoGB).
China-Pakistan Tensions Loom Over Local Unrest
With CPEC supply chains frozen, Chinese nationals stuck, and foreign tourists left stranded, pressure is mounting on Islamabad.
Yet, no federal response has been announced so far.
This isn’t the first time Pakistan’s federal economic policies have clashed with the region’s disputed status. But the scale and duration of the current protest could mark a turning point.
📌 What’s at Stake?
- Billions in stuck cargo
- Collapse of tourism in PoGB
- Delay in cross-border trade
- Rising local anger against the centre