20th Day of Occupation: KKH Traders’ Sit-In Disrupts Travel and Trade in Pakistan

Gilgit-Baltistan Protests Disrupt Trade with China, Demand Tax Relief

Gilgit, Pakistan – A 20-day protest along the Karakoram Highway (KKH) is continuing to halt trade and travel between Pakistan and China through the Khunjerab Pass. Demonstrators in Gilgit-Baltistan (GB) are voicing strong opposition to federal taxation policies and the prolonged suspension of customs clearance at the Sost dry port.The protests, organized by the Tajir Etihad action Committee, centre around the assertion that imposing income tax, sales tax, and other federal levies on GB residents is unlawful. protesters argue that, as a disputed territory, the Federal Board of Revenue’s (FBR) operations in the region are unconstitutional and should be suspended until GB gains depiction in the Pakistani Parliament.

traders are also demanding the immediate clearance of approximately 280 consignments imported from china that have been held at the Sost dry port for over a year. They claim billions of rupees worth of goods have either expired or been damaged due to recent rainfall, resulting in notable financial losses and widespread unemployment.

“Taxes cannot be collected from the people of GB until representation in the Parliament of Pakistan is provided,” stated demonstrator Abbas Mir, echoing the sentiment of many involved in the ongoing sit-in.

The protesters are seeking a full exemption from all taxes on Chinese imports for GB residents, the release of the held consignments, and compensation for goods damaged while in storage.

Opposition member of the GB Assembly, Jawed Ali Manwa, has voiced support for the protesters, warning that the FBR’s policies risk increasing alienation and weakening national unity. He emphasized that free trade with China is a essential right for the people of GB.

Despite a recent promise from Prime Minister Shehbaz Sharif to address the issue and offer a one-time amnesty for the stuck consignments, protesters accuse the government of inaction and delaying tactics. they have vowed to escalate their movement if their demands are not met. the ongoing disruption has also left numerous tourists stranded in Sost.

In response to the escalating situation, Gilgit-Baltistan Chief Minister Haji Gulbar Khan has established a 20-member committee, including key government officials and stakeholders, tasked with finding a resolution to the border trade tax issues.The committee’s success remains to be seen as the protest enters its third week.

how might the prolonged KKH blockade impact the long-term viability of trade routes crucial to the China-Pakistan Economic Corridor (CPEC)?

The Ongoing KKH Blockade: A Deep Dive

The Karakoram Highway (KKH) remains considerably disrupted as the traders’ sit-in protest enters its 20th day, causing escalating concerns for both domestic trade and international connectivity. The protest, primarily led by traders from Gilgit-Baltistan, centers around demands for revised taxation policies and greater economic autonomy. This prolonged blockage is impacting supply chains, increasing commodity prices, and creating important hardship for travelers.The situation is notably sensitive given the KKH’s strategic importance as a vital link in the China-Pakistan Economic Corridor (CPEC).

Key Demands of the Protesters

The core grievances fueling the KKH sit-in revolve around several key issues:

Taxation concerns: Traders are protesting what they perceive as unfair and burdensome tax policies imposed by the federal government. They argue these policies stifle local businesses and hinder economic growth in Gilgit-Baltistan. Specific complaints include the imposition of income tax and sales tax.

Economic Autonomy: A central demand is for greater economic control and decision-making power for the Gilgit-Baltistan region. Protesters believe the region’s resources are not being adequately utilized for the benefit of its residents.

CPEC Benefits: Concerns exist that the economic benefits of the CPEC are not reaching the local population of Gilgit-Baltistan. Traders are demanding a greater share in the opportunities generated by the corridor.

Wheat Subsidy: The protesters are also demanding the continuation of a wheat subsidy, arguing its removal will lead to increased food prices and hardship for the local population.

Impact on Trade and supply Chains

The KKH blockade is having a cascading effect on Pakistan’s trade and supply chains.

Goods Stranded: Hundreds of trucks carrying essential goods,including food items,fuel,and construction materials,are stranded on both sides of the blockade. This is creating shortages in Gilgit-baltistan and perhaps impacting supplies in other parts of the country.

Increased Commodity Prices: The disruption to supply chains is inevitably leading to increased prices for essential commodities. Reports indicate a significant rise in the cost of food items, fuel, and other necessities in affected areas.

export Delays: The KKH is a crucial route for transporting goods to and from China. The blockade is causing delays in exports,potentially damaging Pakistan’s trade relations and impacting revenue.

impact on CPEC Projects: While not directly halting CPEC projects, the ongoing disruption raises concerns about the long-term viability and security of the corridor. Delays in transporting materials and equipment could impact project timelines.

travel Disruptions and Humanitarian Concerns

Beyond the economic impact, the KKH blockade is causing significant hardship for travelers:

Stranded Passengers: Thousands of passengers are stranded along the KKH, including tourists, students, and individuals traveling for medical treatment.

limited Access to Essential Services: The disruption is hindering access to essential services, including healthcare and emergency assistance, for communities along the highway.

Food and water Shortages: Stranded travelers are facing shortages of food, water, and other essential supplies. Local communities are attempting to provide assistance, but resources are limited.

Security Concerns: The prolonged presence of stranded individuals and the potential for unrest raise security concerns in the region.

Government Response and Negotiation Efforts

The Pakistani government has engaged in negotiations with the protesters, but a resolution remains elusive.

Initial Talks: Initial talks between government representatives and the traders’ leadership failed to yield a breakthrough. Protesters have expressed dissatisfaction with the government’s offers, deeming them insufficient to address their concerns.

Federal Minister involvement: Federal ministers have been dispatched to Gilgit-Baltistan to engage in further negotiations and attempt to resolve the crisis.

Security Deployment: Security forces have been deployed to the area to maintain law and order and prevent any escalation of the situation. Though, authorities are reportedly exercising restraint to avoid a confrontation with the protesters.

Option Routes: Authorities are exploring alternative routes to mitigate the impact of the KKH blockade, but these routes are often longer, more expensive, and less accessible.

Regional Implications and Future Outlook

the KKH sit-in has broader regional implications,particularly concerning the CPEC and Pakistan’s relations with China.

CPEC Security: The disruption highlights the need for enhanced security measures along the CPEC route to ensure the smooth flow of trade and investment.

Pakistan-China Relations: China has expressed concerns about the impact of the blockade on CPEC projects and has urged the Pakistani government to resolve the issue swiftly.

Gilgit-Baltistan’s Status: The protests underscore the long-standing demands for greater autonomy and economic empowerment in Gilgit-Baltistan. Addressing these concerns is crucial for maintaining stability in the region.

**Potential for Escalation