Pakistan’s inaction worsens PoGB crisis, traders’ protest halts trade with China

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Gilgit [PoGB]: A high-powered committee formed by Prime Minister Shehbaz Sharif once again failed to reach a consensus on Tuesday over the demands of Pakistan-occupied Gilgit-Baltistan’s (PoGB) traders, forcing a postponement of the matter until Wednesday, according to Dawn.

The 22-member body, headed by Federal Energy Minister Awais Leghari, met in Islamabad for the fourth time to address disputes related to taxes and clearance of consignments imported through the Khunjerab Pass.

Senior ministers Rana Sanaullah and Amir Muqam, Attorney General Mansoor Usman Awan, Senator Saleem Mandviwalla, PoGB Chief Minister Haji Gulbar Khan, PoGB Assembly member Amjad Hussain Advocate, and representatives from state institutions including NLC, FBR, and ISI attended the session.

The meeting remained inconclusive after PoGB representatives reiterated their demand to declare the region a tax-free zone, arguing that federal taxation was unjustified for a non-tariff area. They also sought permission to import unlimited goods from China for local consumption.

However, Senator Mandviwalla opposed unrestricted imports, while others raised concerns about exempting PoGB residents from income tax and other federal levies, as highlighted by Dawn.

PoGB lawmakers also pressed for the immediate release of consignments that have been stuck at Sost Dry Port for nearly 10 months, citing billions in losses suffered by traders. The deadlock forced the committee to defer its recommendations to another session.

Earlier, the PoGB Cabinet, after consulting protesting traders, had submitted proposals suggesting that imports for local use should require approval from the regional government. The Cabinet also recommended relief for perishable goods under the prime minister’s amnesty scheme and exemption of local traders from federal taxes on goods sold within PoGB, while maintaining duties on consignments sent outside the region.

On Monday, Opposition members in the PoGB Assembly staged a walkout after their resolution seeking tax-free status for the region was not tabled. Speaker Nazir Ahmed attributed the lapse to a lack of quorum, as reported by Dawn.

Meanwhile, traders’ protests at Sost entered their 50th consecutive day, blocking the Karakoram Highway and halting cross-border trade with China. Immigration offices remained closed, stranding tourists, Chinese nationals, and Pakistani students enrolled in Chinese universities, according to Dawn.

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