Tensions rising in Pakistan's Gilgit-Baltistan against Chinese dominance

Hans India

13 hours ago

Tensions are growing in Pakistan's Gilgit-Baltistan region between local communities and the increasingly dominant China-Pakistan trade apparatus, according to reports.
Social media footage widely circulated showed Chinese nationals blocking a key road in protest, and within hours, Pakistani traders responded by staging a sit-in that effectively brought cross-border movement at the Sost town at the Gilgit-Baltistan (GB) immigration point to a standstill on July 31.
According to a report in the online publication Zamin.uz, these developments are not isolated. They reflect a deepening discontent in Gilgit-Baltistan over what many local residents view as an exploitative trade relationship—one in which the economic benefits disproportionately favour Chinese interests while local traders are left to navigate a system they say is stacked against them.
Gilgit-Baltistan's traders have been voicing concerns for years, but recent developments underscore just how acute those frustrations have become.
Many in the region argue that the China-Pakistan Economic Corridor (CPEC) -- a project long hailed by Islamabad as a game-changer -- has offered little by way of tangible benefit to the local economy.
Instead, GB residents say they are witnessing their lands used as corridors for foreign economic gain while their own businesses are suffocated by bureaucracy and an uneven playing field.
A recurring complaint involves the inspection of Pakistani goods and vehicles by customs officials, while Chinese shipments often pass with minimal scrutiny.
One Gilgit-Baltistan trader told a local media outlet that they were required to provide strict documentation and face exhaustive checks, while Chinese goods faced almost no scrutiny at all.
Adding to this imbalance are concerns about labour. Chinese workers employed in infrastructure projects under CPEC are often flown in rather than hired from the local population, leaving many GB residents sidelined despite promises of job creation.
According to the report, the Pak-China Traders Action Committee (PCTAC) has escalated its protest at the Sost Dry Port in Hunza since July 21, demanding an end to what it terms illegal taxation by federal agencies.
The committee, comprising traders, hoteliers, transporters, and local businesses, has blocked the Karakoram Highway in Hunza and Nagar districts, disrupting trade with China.
Tensions flared after the arrest of PCTAC leaders Abbas Mir, Ali Nazar, and Farman Ali Tajik on the night of July 20–21. They were released the next day amid pressure from the trading community.
The dispute stems from federal authorities, including the FBR and Pakistan Customs, imposing income and sales taxes on Chinese imports via the Khunjerab Pass.
Historically, traders from Gilgit-Baltistan were informally exempt from such levies, especially for small-scale and local-market trade. However, stricter enforcement in recent months, citing smuggling concerns, has angered traders.
Despite its strategic importance, the region remains in a constitutional limbo, lacking full provincial status and often excluded from the mainstream political discourse.
This marginalisation has made it easier for Islamabad to push forward large-scale economic projects—like CPEC—without robust local consultation.
Critics argue that this approach reduces GB to a transit zone, valuable only for its geographic location rather than for its people.
While Islamabad plays a quiet role, China's growing footprint in the region is increasingly visible—and increasingly contested.
From the construction of roads and tunnels to the operation of customs facilities, Chinese companies and personnel are a familiar presence in GB towns like Sost and Hunza.
Though some local residents acknowledge the improvements in connectivity and infrastructure, many also feel overwhelmed by what they see as a foreign economic occupation, the report added