On June 1, 2025, traders in Gilgit-Baltistan, supported by political parties, intensified their protest against the Federal Board of Revenue’s (FBR) trade policies by blocking the Karakoram Highway (KKH) at Gulmat Nagar, stranding thousands of passengers and tourists.
The Karakoram Highway protest, now in its third day, demands the clearance of 240 consignments stuck at Sost Dry Port, as reported by Dawn.
Led by the Pak-China Traders Action Committee, including the Gilgit-Baltistan Importers and Exporters Association, the sit-in condemns FBR’s “exploitative” policies, which protesters claim have caused “economic murder” by halting Pak-China trade via Khunjerab Pass for seven months. Leaders like Abbas Mir and Ebad Nagari highlight the lack of local industry, with trade supporting transporters, shopkeepers, and labourers, per The Express Tribune. They argue that the FBR trade policies have left traders jobless.
Gilgit-Baltistan traders blocked the Karakoram Highway in Nagar on Friday and launched a continuous protest.
The demonstration was led by the Pak-China Traders Action Committee—an alliance that includes the Gilgit-Baltistan Importers and Exporters Association, the Nagar Chamber… pic.twitter.com/Nryv6kSZ1Y
— Ibex Media Network (@IbexMedianetwrk) May 31, 2025
Protesters demand a one-time amnesty to clear their consignments, the restoration of barter trade with China’s Xinjiang under the 1985 border agreement, and the local auctioning of seized counterfeit goods at the Sost Dry Port. They criticise the Federal Board of Revenue (FBR) for denying import rights to border pass holders and for taxing Gilgit-Baltistan despite its disputed status. PML-N leader Javed Hussain accused the federal government of neglecting the region, stating, “No taxation without representation.”
Failed Negotiations and Impact
Discussions with GB Home Minister Shams Lone and other officials were unsuccessful, as the GB government does not have the authority to address federal issues. Special Assistant Muhammad Ali Quaid stated that the chief minister’s recommendations are pending discussion at an apex committee meeting.
The blockade by Gilgit-Baltistan traders has disrupted travel, leading to long vehicle queues. The shutdown of the KKH is crippling tourism. Additionally, the issue with consignments at Sost Dry Port remains unresolved, fueling unrest.
The Karakoram Highway protest underscores tensions over Pak-China trade policies, impacting Gilgit-Baltistan’s economy and regional connectivity. As traders demand relief, the standoff tests federal responsiveness and highlights representation issues, drawing attention to Pakistan’s trade and governance challenges.