Govt Grants Rs4bn Tax Relief to End Gilgit-Baltistan Traders’ Strike at Sost Dry Port

In a major breakthrough to resolve the weeks-long strike by Gilgit-Baltistan (GB) traders, the federal government on Wednesday announced a relief package exempting imports through the Sost Dry Port from key federal taxes — but strictly for goods consumed within GB under a tightly controlled framework.

Key Highlights

• Rs4bn annual cap on tax relief for Sost imports.
• Exemptions cover Sales Tax, Advance Income Tax, and Federal Excise Duty.
• Only GB-owned and locally registered firms qualify.
• Imports must be for local consumption only, not resale outside GB.
• Quotas allocated on a first-come, first-served basis via the Customs system.
• Agreement signed after negotiations with the federal, GB government, and trader representatives.
• Relief package approved by PM Shehbaz Sharif following a 45-day review.

Deal Sealed After Weeks of Protests

The agreement was unveiled during a press conference attended by Federal Minister for Power Sardar Awais Ahmad Khan Leghari, GB Chief Minister Haji Gulbar Khan, Senator Saleem Mandviwalla, and representatives of trader bodies. Officials confirmed that the deal had Prime Minister Shehbaz Sharif’s nod after weeks of negotiations and unrest.

Leghari said the relief package was designed to address long-standing tax disputes that had paralyzed trade through Sost, GB’s lifeline for cross-border imports from China.

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Strict Conditions for Tax Exemptions

Under the new arrangement, the exemptions will only apply if:

• Imports are brought in by firms owned by indigenous GB residents.
• Goods are authorized by the GB government and declared in Customs records.
• Items fall within a pre-approved list of tariff lines.

Any violation, misdeclaration, or resale of goods outside GB will lead to cancellation of exemptions and possible confiscation. The government has also reserved the right to suspend the scheme if misuse or smuggling is detected.

Transparency & Oversight

The package sets a Rs4bn annual ceiling, with allocations distributed by Customs on assessed values. Relief will be given on a first-come basis, while any excess beyond quota limits will not qualify.

To ensure transparency, all exemptions and beneficiary firms will be published on the FBR website. The scope of relief will be reviewed every two years — or earlier if trade disruptions or irregularities arise.

Additional Measures

• A customs tribunal will be established for Sost-related disputes.
• A Deputy Director of Valuation will visit GB annually to oversee compliance.
• Terminal operators have been directed to review delay and demurrage cases of stuck consignments.
• Goods violating the Import Policy Order will face confiscation after due process.

Traders to Call Off Strike

Following the signing of the agreement, trader representatives have agreed to end their strike and resume business activities. The deal is being seen as a relief for GB’s fragile economy, which heavily depends on smooth cross-border trade with China.

Broader Implications

While the relief package is a major step to calm tensions, experts note that questions remain over tax jurisdiction and GB’s constitutional status — issues that were sidestepped during the press briefing. For now, however, the agreement is viewed as a pragmatic move to restore economic normalcy in the region.

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