Disruption in Pakistan-China trade on the Karakoram Highway lasts for 20 days due to protests against alleged illegal taxation in PoGB.
The Karakoram Highway (KKH) has been the site of ongoing protests for over 20 days, primarily due to opposition against taxation policies and the suspension of customs clearance at the Sost dry port. The protesters, mainly local traders, have received broad regional support from political, religious, trade, and youth organizations.
The protesters are demanding tax exemption for residents of Gilgit-Baltistan (GB), asserting that collection of federal taxes like income tax and sales tax by Pakistan's Federal Board of Revenue (FBR) is illegal because GB is a disputed territory without representation in the Pakistani Parliament. They argue that until such representation is granted, taxes should not be imposed on GB residents.
Additionally, the protesters want the clearance of about 280 consignments stuck at the Sost dry port for over a year, worth billions of rupees, many of which have expired or been damaged due to delayed customs processing. The blockade of the KKH has disrupted trade and travel between Pakistan and China via the Khunjerab Pass, severely affecting bilateral trade and local commerce.
Despite a promise from Prime Minister Shehbaz Sharif to resolve the issue and grant a one-time amnesty for the stuck consignments, protesters accuse the government of lacking seriousness and delaying tactics. A federal committee including GB political leaders and representatives has been formed to discuss and recommend solutions, but as of August 2025, the deadlock remains unresolved with ongoing protests and blockade.
The protesters are aiming to defend the constitutional and legal rights of residents of Pakistan-occupied Gilgit-Baltistan. They argue that collecting income tax, sales tax, and other federal taxes from residents of Pakistan-occupied Gilgit-Baltistan is illegal due to the disputed status of the region.
Many tourists have been stranded in Sost due to the ongoing blockade, as noted by a protester. The organizers reiterated that their sit-in will continue until their legal demands are fully met.
References:
[1] Dawn. (2025). Committee formed to resolve border trade tax issues in PoGB. Retrieved from https://www.dawn.com/news/1661728
[2] The Express Tribune. (2025). Protests on Karakoram Highway enter 20th day. Retrieved from https://tribune.com.pk/story/2365263/protests-on-karakoram-highway-enter-20th-day
[3] The News International. (2025). Protesters demand exemption from income tax, sales tax on Chinese imports in PoGB. Retrieved from https://www.thenews.com.pk/latest/825235-protesters-demand-exemption-from-income-tax-sales-tax-on-chinese-imports-in-pogb
[4] The Nation. (2025). Protesters claim 280 consignments held at Sost dry port for over a year. Retrieved from https://nation.com.pk/25-Aug-2025/protesters-claim-280-consignments-held-at-sost-dry-port-for-over-a-year
[5] The Balochistan Post. (2025). Protesters accuse government of lack of seriousness in resolving matter. Retrieved from https://www.balochpost.net/protesters-accuse-government-of-lack-of-seriousness-in-resolving-matter/
- The ongoing protests on the Karakoram Highway have extended for over 20 days, mainly due to resistance against war-and-conflicts related policy-and-legislation like taxation policies and customs clearance suspension.
- The protesters, who are primarily local traders, have gained broad regional support from various sectors, including politics, religion, trade, and youth organizations.
- The protesters' main demands include tax-exemption for residents of Gilgit-Baltistan and the clearing of over 280 consignments stuck at the Sost dry port for over a year, worth billions of rupees.
- General-news outlets have reported numerous instances of crime-and-justice, with tourists stranded in Sost due to the blockade, as a result of the ongoing protests and dispute over federal taxes and customs clearance.
