Local traders in Gilgit-Baltistan have been protesting and blocking a port since July. Their protest is against the government’s tax policies and the suspension of customs clearance at the port.
Yesterday, the government agreed to provide tax exemptions on imports coming through the port. This agreement was made with the condition that the goods were for local consumption and met strict eligibility criteria. The total annual value of these tax exemptions was capped at Rs4 billion.
This was announced after talks in Islamabad between the federal government, the GB government, and local business leaders.
However, a trader representative named Hussain stated that the traders are not satisfied with this agreement.
He said: “After the agreement and its announcement in Islamabad, we were advised to end the protest. But we don’t agree with this suggestion and have decided to continue the sit-in and keep trade suspended.”
Hussain added that the traders will now meet with their representative body that held the talks. He said if its members can provide a satisfactory justification for the agreement, the traders will then consider whether to continue the protest.
He asserted, “Setting a limit on imports and placing a cap of Rs4 billion goes against our demands.” He added that the traders’ demands are based on GB’s “legal status” in the country and the “exemption it was provided under the Constitution.”
But the decision made in Islamabad is contrary to this, and “we are of the view that by setting a limit on imports, the decision-makers have failed to resolve the fundamental dispute,” he said.
Hussain also pointed out that a statutory regulatory order (SRO) has not been issued yet, and only an agreement has been finalized. “We are carefully reviewing the provisions of this agreement,” he added.
Reiterating that the traders are not satisfied, he mentioned they might consider a “Plan C.”
He also said that they would consult with all stakeholders and discuss the agreement’s shortcomings before deciding whether to end the protest.
The trade leader also questioned why “dozens of containers that were stuck for several months” are not being cleared through an SRO, and other procedures are being used for this purpose instead.
