Traders block highway connecting northern Pakistan to China as sit-in against taxes enters 12th day

In this photograph taken on September 29, 2015, Pakistani commuters wait to travel through a newly built tunnel in northern Pakistan's Gojal Valley. (AFP/File)
Short Url
Updated 06 August 2024
Follow

Traders block highway connecting northern Pakistan to China as sit-in against taxes enters 12th day

  • Traders disrupt trade and traffic at Karakorum Highway to protest Islamabad’s move to tax goods imported through Khunjerab Pass
  • Federal Board of Revenue spokesperson says GB court to hear matter today, assures compliance with whatever directives it issues

KHAPLU, Gilgit-Baltistan: A sit-in protest organized by traders in the northern Gilgit-Baltistan region at an important highway connecting Pakistan to China entered its 12th day on Tuesday, causing disruption for cross-border trade and transportation as protesters vowed not to let up until the federal government reverses its decision to impose taxes on imports. 

Traders on Monday blocked the entry and exit points of the Karakoram Highway (KKH) in Sost village in GB. Protesters have accused the federal government of violating a GB court order which restrained customs and Pakistan’s tax agency, the Federal Bureau of Revenue (FBR) from collecting taxes on goods imported through the Khunjerab Pass on KKH. 

On July 20, the GB Chief Court declared illegal the collection of income tax, sales tax and additional sales tax by Pakistani revenue authorities on goods imported from China through the Khunjerab Pass. Accusing the government of violating the court’s orders, scores of traders have been staging a sit-in protest since July 26 near the Sost dry port. 

“After 11 days of sit-in at the National Logistics Corporation’s office, now we have shifted our location to Karakorum Highway at Sost dry port,” Imran Ali, president of the GB Chamber of Commerce and Industry told Arab News over the phone.

“Now the road is blocked for all kinds of trade and traffic, and we will continue our protest unless our demands are fulfilled,” Ali vowed. “The GB government is also with us and we are also in contact with the federal government in this matter.”

Ali said over 1,500 traders are associated with the border trade, adding that they constituted a 16-member committee on August 4 which would meet GB chief minister to discuss the issue. 

GB Information Minister Eman Shah admitted that trade had been suspended at the border due to the protest. He said the matter was not linked to the GB government but was a “federal subject,” adding that trade bodies’ representatives had held meetings with government officials at the Prime Minister’s Secretariat in Islamabad to discuss the matter. 

“They should end the protest because this border is very important for the country,” Shah told Arab News over the phone. “Because developments of major projects are linked with this border.”

Muhammad Iqbal, president of the GB Importers and Exporters Association, said the dispute erupted in January when the border was temporarily opened to facilitate some TIRs (Transports Internationaux Routiers), an international customs transit system. 

He said local traders had been exempt from income and sale taxes since 1996 but in 2024, the customs collectorate started to tax local traders. The GB Chief Court declared the move illegal, but Iqbal alleged authorities violated the order. 

“Sympathies of all political, social and religious parties are with us,” he said. “And if our demand is not met, we will start a protest march from Hunza-Nagar district to the Khunjerab Pass.”

Ninety-six percent of trade between Pakistan and China consists of China’s exports to Pakistan, while Pakistan’s share of exports to China is only 4 percent, as per the Trade Development Authority of Pakistan (TDAP). 

The main items imported from China into Pakistan include electronic items, shoes, garments and spare parts while Pakistan exports gemstones, dry fruits, medicinal herbs and some clothing items to the neighboring country. 

Bakhtiar Muhammad, an FBR spokesperson said the GB court will conduct a hearing into the matter on Tuesday.

“If the court decides in favor of importers, the decision will be implemented,” he said. “In case the decision is in the department’s favor, the same shall also be implemented. Either way, the protest will hopefully end as their main demand is to implement the GB court decision.”


Muslim World League supports UNICEF on children’s needs in Pakistan, Chad, Afghanistan

Updated 8 sec ago
Follow

Muslim World League supports UNICEF on children’s needs in Pakistan, Chad, Afghanistan

  • $1.5 million agreement will enhance education and skill-building programs in Chad and Pakistan 
  • In Afghanistan, agreement will help to improve, increase coverage of maternal, newborn, childcare services 

ISLAMABAD: UNICEF and The Muslim World League (MWL) have signed a $1.5 million agreement to enhance education and skill-building programs in Chad and Pakistan and to improve maternal, newborn and childcare services in Afghanistan, the UN agency said in a statement this week.

The agreement was signed by UNICEF Representative to Pakistan, Abdullah A. Fadil, on behalf of UNICEF’s Executive Director, Catherine Russell, and MWL’s General Manager of Strategic Partnerships, Dr. Shaima Alluqmani, on the sidelines of a global conference on Muslim World League Initiative hosted by Pakistan in Islamabad last week. 

‘The climate crisis and digital divide are critical challenges faced by children in Pakistan every day. Providing vulnerable children and youth, especially girls, with the education and skills they need will empower them to reach their full potential and help Pakistan prosper,” Fadil said.

“We look forward to working with the Muslim World League to help ensure that no girl is left behind.”

The agreement will support the “Green Skills Training Programme for Non-Formal Education Students” in Pakistan to equip adolescents — especially girls — with essential green skills and digital skills. The program will enhance their employability and empower them to contribute to a sustainable future, the statement said. 

In Chad, the “Renovation of Qur'anic Schools in Lac” program aims to improve access to education and learning environment in religious schools. This program includes teacher training, the construction of 12 classrooms, and the provision of clean water to 500 students in two schools.

As for Afghanistan, the “Improving Quality of Care for Maternal, Newborn and Childcare Health Services (MNCH)” program was designed to increase access to and utilization of high-quality MNCH services across the country through strengthening health facilities, equipping them with necessary supplies, and improving clinical practices. This program seeks to reduce maternal and newborn mortality and morbidity by ensuring better care and coverage.

Dr. Shaima Al-Luqmani, Director General of Strategic Partnerships at the Muslim World League, said the MWL was keen for such agreements to represent an important pillar of the MWL’s initiative, “Girls’ Education in Muslim Communities: Challenges and Opportunities,” through tangible projects that positively impact the future of millions of girls and women in Muslim societies.

Al-Luqmani added that the initiatives and partnerships established by the MWL with various governmental and non-governmental regional and international organizations “have emphasized inclusivity in their programs, whether in the field of girls’ education and its related services and institutions, or in raising awareness and correcting misconceptions and misinterpretations that cast doubt on the undisputed legitimate right of girls to receive education.”

Muslim World League and UNICEF had partnered for over 14 years, delivering impactful results for children and reaching the most vulnerable with humanitarian supplies and services in education, health, social protection, water and sanitation hygiene ‘WASH’. 


‘All options exhausted,’ army chief tells political leaders on militant attacks from Afghanistan

Updated 6 min 19 sec ago
Follow

‘All options exhausted,’ army chief tells political leaders on militant attacks from Afghanistan

  • General Asim Munir explained the situation this week after politicians in Peshawar called for negotiations with Kabul
  • All parties unanimously expressed support for targeted actions against TTP militants, as per meeting participants

KARACHI: Pakistan’s army chief, General Asim Munir, told political leaders in Peshawar this week the country had “exhausted all options” to persuade Afghanistan to curb cross-border militant attacks, expressing regret the administration in Kabul had failed to restrain armed factions, a participant of the meeting said on Tuesday.

General Munir visited Peshawar on Monday, where he received a briefing on the current security situation and ongoing counter-terrorism operations in Khyber Pakhtunkhwa (KP), which borders Afghanistan.

Pakistan has struggled to contain escalating militant violence in KP since a fragile truce between the Tehreek-e-Taliban Pakistan (TTP) and the government collapsed in November 2022. Officials in Islamabad say the TTP leadership is based in Afghanistan from where its attacks on Pakistani civilians and security forces are “facilitated” by the Afghan authorities, an allegation denied by Kabul.

During his visit to Peshawar, the army chief engaged with leaders from various political parties, including Chief Minister Ali Amin Gandapur. During the meeting, political representatives expressed “vivid clarity on unflinching support” for the armed forces and law enforcement agencies in the nation’s fight against extremist violence and agreed on the need for a unified front against militant networks, according to the Inter-Services Public Relations (ISPR), the military’s media wing.

“We have exhausted all our options,” Aftab Sherpao, a former federal minister who heads the Qaumi Watan Party and attended the meeting, told Arab News over the phone, quoting the army chief.

Sherpao said the top Pakistani general issued the comment while responding to political leaders advocating for talks and avoiding confrontation with the Afghan Taliban administration.

“He [the army chief] also said some foreign countries were also engaged in talks to persuade th Taliban in Kabul, but terrorist attacks still continue against Pakistan,” Sherpao added.

Professor Muhammad Ibrahim, another participant and leader of the Jamaat-e-Islami (JI) Party, corroborated the information, saying that almost all political parties agreed that negotiations with Kabul should continue.

“Almost all political parties emphasized the need for negotiations with Afghanistan, arguing that war is not the solution,” he said.

“The army chief said the negotiations were still going on, but no positive outcome had emerged so far,” Ibrahim continued. “In response we stressed that a positive outcome will eventually come, and talks should continue.”

The JI leader also quoted the army chief as saying the military was not planning a full-scale operation against the TTP but was carrying targeted intelligence-based actions.

Brig. Mehmood Shah, an expert on Pakistan-Afghanistan affairs, criticized the Afghan Taliban for failing to honor the 2020 Doha Agreement, which ended the Afghan war on the condition that Kabul would prevent its soil from being used by militants against other countries.

“The world knows that in the Doha Agreement, the US explicitly stated that Afghanistan must not allow its territory to be used against its neighbors,” he said. “The US is not Afghanistan’s neighbor, so why was it so insistent?”

Shah said the international community knew Afghanistan had been allowing its land to be used against its neighbors.

He noted that Pakistan, a nuclear-capable country with an air force, had shown restraint despite its capabilities.

“Pakistan has been in dialogue with Afghanistan, but Afghanistan is unwilling to act against the TTP,” Shah continued. “If Pakistan then carries out operations inside Afghanistan, Kabul should not complain.”

According to Pakistan’s state broadcaster, PTV News, the army chief informed the meeting that the primary points of contention between Pakistan and Afghanistan were the presence of the banned TTP on Afghan soil and cross-border attacks.


Pakistan expects $40 billion as World Bank announces decade-long development framework

Updated 21 min 11 sec ago
Follow

Pakistan expects $40 billion as World Bank announces decade-long development framework

  • World Bank Group’s Country Partnership Framework is designed to support inclusive and sustainable growth
  • The framework aims to focus on education, health care, environmental resilience and financial management

ISLAMABAD: The World Bank Group’s (WBG) Boards of Executive Directors on Tuesday announced a decade-long Country Partnership Framework (CPF) for Pakistan, a plan the administration in Islamabad hopes will channel $40 billion in economic support to drive inclusive and sustainable development.

The country plan is a strategic framework that shapes the WBG’s long-term engagement with a country. It is built on a thorough assessment of the nation’s critical challenges and opportunities, ensuring that the group’s financial, technical and advisory resources are precisely aligned with the country’s development priorities for optimal impact.

According to the World Bank, the new framework for Pakistan targets six major areas, including education, health care, environmental resilience and financial management.

“Our new decade-long partnership framework for Pakistan represents a long-term anchor for our joint commitment with the Government to address some of the most acute development challenges facing the country,” said Najy Benhassine, World Bank Country Director for Pakistan. “Support to policy and institutional reforms that boost private sector-led growth and create fiscal space to finance the investments needed to address these challenges will remain key in our engagements.”

According to a statement from Pakistan’s Economic Affairs Division, the World Bank and its partner institutions have committed a total of $40 billion under the framework. This includes $20 billion from the International Development Association (IDA) and the International Bank for Reconstruction and Development (IBRD), while an additional $20 billion will come from the International Finance Corporation (IFC), which focuses on private sector development.

The WBG noted that the country plan aims to reduce child stunting by improving access to clean water, sanitation and nutrition services, while also addressing learning poverty through better foundational education.

Other priorities include bolstering resilience to floods and climate-related disasters, improving food and nutrition security, promoting cleaner energy and better air quality, and enhancing fiscal management to create space for development spending.

Zeeshan Sheikh, IFC Country Manager for Pakistan and Afghanistan, highlighted the importance of private sector participation in these areas, saying, “We are focused on prioritizing investment and advisory interventions that will help crowd-in much needed private investment in sectors critical for Pakistan’s sustainable growth and job creation, including energy and water, agriculture, access to finance, manufacturing and digital infrastructure.”

The framework also includes cross-cutting measures such as expanding social safety nets, advancing financial inclusion and enhancing digital and transport connectivity to protect vulnerable populations, particularly women.

Since commencing operations in Pakistan in 1950, the WBG has provided over $48.3 billion in assistance through IBRD, invested $13 billion via IFC to advance private sector-led growth, and delivered $836 million in guarantees through Multilateral Investment Guarantee Agency (MIGA).

Currently, the WBG’s portfolio in Pakistan includes 106 projects with a total commitment of $17 billion.


Eight Pakistani firms participate in Intersec 2025 business exhibition in Dubai

Updated 10 min 2 sec ago
Follow

Eight Pakistani firms participate in Intersec 2025 business exhibition in Dubai

  • The development comes as Pakistan, faced with a prolonged economic crisis, is scrambling to enhance trade with various countries
  • Consul-general says the participation of local firms in global exhibitions like Intersec underscores Pakistan’s capabilities in safety sector

ISLAMABAD: Eight Pakistani firms are participating in the Intersec 2025 business exhibition in Dubai, the Pakistani embassy in the United Arab Emirates (UAE) said on Tuesday.

The 26th edition of Intersec, touted as the world’s largest business exhibition for security, safety and fire protection, is being held on Jan. 14 -16 at Dubai World Trade Center.

On Tuesday, Pakistani Consul-General Hussain Muhammad, along with Trade and Investment Counselor Ali Zeb Khan, inaugurated the Pakistan Pavilion at the exhibition.

“Pakistani companies, under the auspices of the Trade Development Authority of Pakistan (TDAP), are participating in event to showcase their products,” the Pakistani embassy said in a statement.

“The Pakistani exhibitors expressed their satisfaction with the event arrangements and emphasized the significance of such platforms in enhancing Pakistan’s export potential to the UAE and other GCC [Gulf Cooperation Council] markets.”

The development comes as Pakistan, faced with a prolonged economic crisis, has been making efforts to enhance trade with various countries in the region as well as to attract foreign investment to revive its $350 billion economy.

Policymakers in Pakistan consider the UAE an optimal export destination due to its geographical proximity, which minimizes transportation and freight costs while facilitating commercial transactions.

The Pakistani consul-general said the participation of Pakistani companies in global exhibitions like Intersec underscores Pakistan’s commitment to fostering trade ties and showcasing its capabilities in the safety sector.

“The event provides an ideal opportunity for Pakistani companies to explore the world market and make business connections,” he added.


Pakistan, Bangladesh commanders underscore enduring partnership for resilience against ‘external influences’

Updated 14 January 2025
Follow

Pakistan, Bangladesh commanders underscore enduring partnership for resilience against ‘external influences’

  • Pakistan and Bangladesh were once one nation, but split in 1971 as a result of a bloody civil war
  • Ties between both nations have warmed up since PM Hasina’s ouster due to an uprising in Aug.

ISLAMABAD: Top Pakistani and Bangladeshi military commanders have stressed the need for an enduring partnership between the two countries to remain “resilient against external influences,” the Pakistani military said on Tuesday, amid a thaw between the two countries since the ouster of Sheikh Hasina.
Pakistan and Bangladesh were once one nation, but they split in 1971 as a result of a bloody civil war, which saw the part previously referred to as East Pakistan seceding to form the independent nation of Bangladesh.
In the years since, Bangladeshi leaders, particularly former prime minister Hasina, chose to maintain close ties with India. Ties between Pakistan and Bangladesh have warmed up since Hasina’s ouster as a result of a student-led uprising in August, witnessing a marked improvement.
Amid the thaw, Lt. Gen. S M Kamr-ul-Hassan, principal staff officer (PSO) of the Armed Forces Division of Bangladesh, met Pakistan Chief of Army Staff (COAS) General Asim Munir in Rawalpindi, according to the Inter-Services Public Relations (ISPR), the Pakistani military’s media wing.
“During their meeting, both held extensive discussions on the evolving security dynamics in the region and explored further avenues for enhancing bilateral military cooperation,” the ISPR said in a statement.
“The COAS and the PSO underscored the importance of a stronger defense relationship, emphasizing that the enduring partnership between the two brotherly nations must remain resilient against external influences.”
On the occasion, the Pakistan army chief reiterated the significance of joint efforts to promote peace and stability in South Asia and the broader region, while ensuring that both nations continue to contribute to regional security through “collaborative defense initiatives,” according to the ISPR.
Lt. Gen. Hassan acknowledged the sacrifices made by Pakistani armed forces in their fight against militancy, noting that their efforts serve as a beacon of “courage and determination.”
Earlier in the day, Pakistan and Bangladesh signed a landmark agreement to establish a joint business council, the Federation of Pakistan Chambers of Commerce and Industry (FPCCI) said, amid efforts to enhance trade and economic cooperation between the two countries.
“The establishment of the Pakistan-Bangladesh Business Council is a milestone for trade relations between the two countries,” FPCCI President Atif Ikram Sheikh said after signing the agreement in Dhaka, along with representatives of the Administrative Federation of the Bangladesh Chamber of Commerce.
During the visit, the FPCCI chief led a Pakistani business delegation that held meetings with their counterparts in Bangladesh to discuss ways to enhance trade ties. The Trade Corporation of Pakistan also signed a memorandum of understanding for rice export to Bangladesh on Tuesday.
Pakistan’s Deputy Prime Minister Ishaq Dar is also scheduled to visit Dhaka in the beginning of February to further consolidate the relations between the two countries.