Kashmir’s Trade Lifeline Sealed: GB Traders Revolt Against Federal Taxes

Jammu & Kashmir POK - Pakistan Occupied Kashmir

Gilgit-Baltistan, Pakistan-administered Kashmir — For nearly a month, the towering Karakoram Highway — a critical artery linking Pakistan with China — has fallen eerily silent. Traders in Gilgit-Baltistan (GB) have blockaded the region’s only trade corridor to protest the imposition of federal taxes, levies, and duties they insist are unconstitutional and violate United Nations resolutions on Kashmir, reported by Daily Times.

The protests, now entering their 25th day, have brought cross-border commerce to a standstill. Thousands, including tourists, Chinese nationals, truck drivers, and customs agents, remain stranded in the remote mountain region. At the heart of the unrest is GB’s unresolved constitutional status — a disputed territory under international law, yet subject to federal taxation without formal representation in Pakistan’s Parliament.

The region’s traders, supported by political, youth, and religious groups, argue that Islamabad’s tax regime undermines GB’s autonomy and contradicts past acknowledgments by federal authorities. Ayub Waziri, a member of the GB Assembly, recalled that even the Federal Board of Revenue previously conceded GB was a “non-tariff zone.”

“This protest is not just about traders. It’s about dignity, legality, and the future of GB’s people,” Waziri said.

Economic fallout is worsening. Over the past eight months, job losses have soared. Sost Dry Port, once a bustling checkpoint for Pakistan-China trade, has turned into a symbol of paralysis. Local businesses — from hotels to transport firms — have shuttered as uncertainty deepens.

The protesters are demanding not only the repeal of taxes but a clear acknowledgment of GB’s special status until a final resolution of the Kashmir dispute is reached, in line with UN directives.

With no resolution in sight and public sentiment hardening, the government in Islamabad faces mounting pressure to engage — or risk igniting a broader constitutional crisis in its restive northern territories.