Traders in Pakistan-occupied Gilgit-Baltistan (PoGB) have been protesting for 23 consecutive days by blocking the Karakoram Highway, a critical trade route connecting Pakistan and China.

The blockade, which started in late July 2025, has completely halted all bilateral trade and travel through this vital corridor, leaving thousands stranded, including Chinese nationals and foreign tourists.

The core demand of the protesting traders is to end the collection of federal taxes — specifically income tax, sales tax, and federal excise duty — which they deem illegal in Gilgit-Baltistan due to the region’s disputed constitutional status and its exemption from federal taxation under existing legal interpretations.

The traders and protest organisers, including Mohammad Ishaq, argue that since PoGB is not constitutionally a part of Pakistan, its residents are not Pakistani citizens and thus should not be subjected to federal taxes without representation — summarised in their principle stance of “No taxation without representation.”

This sentiment is echoed across political, youth, and religious groups in the region, reflecting wide local solidarity. Ayub Waziri, a member of the PoGB Assembly, corroborated this view by noting that even Pakistan’s Federal Board of Revenue (FBR) previously admitted that Gilgit-Baltistan falls under a “non-tariff zone,” meaning federal taxes should not be imposed there.

The blockade has severely disrupted the local economy, which had already been under strain for over eight months due to these tax issues. Transporters, hotel staff, customs agents, and shopkeepers face unemployment and economic hardship as billions worth of goods remain stuck at the Sost Dry Port — a key customs facility at the border.

Traders have reported that many goods have expired or suffered damage due to delayed clearance, with Pakistani Customs accused of granting preferential speedy clearance to only a select few, aggravating economic exploitation of local people.

The Federal Board of Revenue responded by forming a seven-member committee to evaluate and address the tax grievances of Gilgit-Baltistan’s population. Despite this, no resolution has been reached, and protests have escalated as more people from surrounding areas join, emphasising that the issue affects the entire region, not just the traders. Local leaders have warned that if their demands are not met, protests could intensify, with potential further closures of this strategic trade corridor.

The protest underscores the broader political ambiguity over Gilgit-Baltistan's status and the tension it creates in federal economic policies, with local representatives and citizens feeling marginalised in taxation and trade matters despite the region being integral to the China-Pakistan Economic Corridor (CPEC).

As of early August 2025, with trade frozen and thousands stranded, pressure mounts for the federal government to find a solution that respects local demands while maintaining this critical international trade route.

Based On ANI Report