A committee formed by Prime Minister Shehbaz Sharif to address concerns over taxes and the clearance of consignments imported from China via the Khunjerab Pass met in Islamabad. Chaired by Federal Energy Minister Awais Leghari, this was the body’s fourth meeting.
The session was attended by federal ministers, the Attorney General, Senator Saleem Mandviwalla, Gilgit-Baltistan (GB) Chief Minister Haji Gulbar Khan, and representatives from various government agencies including the NLC, FBR, and intelligence bureaus.
Push for a Tax-Free Zone Sources indicated that the GB chief minister and other GB representatives pressed for declaring Gilgit-Baltistan a tax-free zone and allowing residents to import an unlimited number of items from China for local consumption. They argued that because GB is a non-tariff area, the collection of federal taxes is unjust.
However, Senator Mandviwalla opposed the proposal for unlimited imports, and objections were also raised regarding the mechanism for exempting GB residents from federal levies.
Stuck Consignments at Sost Dry Port Representatives from GB also sought the urgent clearance of consignments that have been stuck at Sost Dry Port for the past 10 months, a situation that has caused traders billions in losses.
The meeting ended in a deadlock over the import and exemption mechanisms. The committee is scheduled to reconvene to attempt to resolve their differences and present a unified set of recommendations to the prime minister.
Traders’ Sit-In and Border Blockade Meanwhile, a traders’ sit-in at Sost entered its 50th consecutive day, blocking the Karakoram Highway and suspending cross-border trade with China. The blockade has also stranded hundreds of individuals, including Chinese nationals, tourists, and Pakistani students.
