
Traders in PoGB block China trade route for 23 days, demand end to ''illegal'' federal taxes
Aug 02, 2025
Gilgit [PoGB], August 2 : Traders in Pakistan-occupied Gilgit-Baltistan (PoGB) on Friday continued their protest for the 23rd consecutive day, blocking the Karakoram Highway--a key trade route with China--demanding an end to federal taxes they deem illegal, Dawn reported.
The prolonged blockade has disrupted all Pakistan-China trade and travel through the vital border crossing, leaving thousands of people, including Chinese nationals and foreign tourists, stranded in the area. The protest has garnered support from local political, youth, and religious parties, who argue that the region's disputed constitutional status exempts it from federal taxation.
"The federal government is reluctant to solve the genuine demands of local people," said Mohammad Ishaq, one of the protest organisers. "They are just demanding how federal taxes can be collected from the people who are not constitutional citizens of Pakistan and the region is a disputed status area," he added.
Ishaq reaffirmed the traders' commitment to their "principle stance of 'No taxation without representation.'"
The tax dispute has reportedly paralysed the local economy for the past eight months, leaving thousands jobless--including transporters, hotel owners, shopkeepers, and customs agents.
Ayub Waziri, a member of the PoGB Assembly, said the issue affects the broader population of the region, not just the trading community. "This is an issue of the GB people," Waziri stated, highlighting that since the region is not constitutionally part of Pakistan, all federal taxes imposed there are illegal.
Waziri further said that during last year's negotiations, officials from Pakistan's Federal Board of Revenue (FBR) admitted that PoGB falls in a "non-tariff zone." He noted that the federal government has since formed a committee to address the matter and that the PoGB government is mediating.
The protest intensified on Friday as hundreds of people from multiple areas joined the blockade to show their solidarity. "The protest movement has awakened GB people for their rights," said Moulana Sharfuddin, a leader of Tanzeem Ahl-i-Sunnat wal Jamat, PoGB, expressing his support.
Protesters claim the deadlock has made them victims of federal economic policies. Ahmed Nabi, a protester, told Dawn that billions of rupees worth of goods imported through the Sost Dry Port have been stuck for over a month. "Many items have expired, while others stored in the open have been damaged by rain because Pakistan Customs officials are not clearing local consignments," he said.
Javed Hussain, another organiser, alleged, "Speedy clearance of goods is allowed to only a handful of people." He added, "The economic exploitation of local people will never be accepted."