Trade and travel between Pakistan and China via the Khunjerab Pass resumed on Sunday after Gilgit-Baltistan (GB) traders ended a 68-day protest sit-in at Sost, which had blocked the Karakoram Highway (KKH).
According to media reports, the sit-in, staged to demand exemptions from federal taxes on imports from China, clearance of stuck consignments at Sost Dry Port, and withdrawal of related cases, concluded after negotiations in Islamabad between traders’ representatives and a federal committee.
The negotiating team included federal ministers Awais Leghari, Rana Sanaullah, and Amir Muqam; Attorney General Mansoor Usman Awan; Senator Saleem Mandviwalla; GB Chief Minister Haji Gulbar Khan; GB lawmakers; and officials from the NLC and FBR.
Under the agreement, the federal government granted annual exemptions of up to Rs4 billion for sales tax, income tax, and federal excise duty on goods imported for local consumption in GB. The exemptions will be reviewed every two years, and smuggling of exempted goods outside GB will result in partial or full withdrawal of the concession.
The deal also included measures to expedite tribunal orders for pending consignments at Sost Dry Port, with waivers on demurrage and port charges where applicable. An SRO on tax exemptions will be issued, and compliance will continue to be enforced by Pakistan Customs.
The agreement further committed both federal and GB authorities to develop border areas, particularly Gojal, and explore measures to boost GB exports to China.
Following the protest’s end, Pakistan Customs officials confirmed that trade operations at Sost Dry Port had resumed, and transport between Pakistan and China restarted, enabling travel for previously stranded passengers.
