Gilgit-Baltistan has received a long-awaited economic relief as the federal government has approved duty- and tax-free imports worth up to Rs4 billion annually through the Sost Customs Dry Port. This decision is being seen as a positive step toward easing the high cost of goods and supporting local businesses in the region.
The exemption has been granted through an official notification issued by the Federal Board of Revenue (FBR) and is effective immediately. It applies under multiple tax laws, including customs duty, sales tax, income tax, and federal excise duty, making it a comprehensive relief package.
How the Facility Works
Under the new arrangement, only goods imported through the Silk Route Dry Port at Sost will qualify for tax exemptions. Additionally, the facility is limited to specific product categories identified through Pakistan Customs Tariff (PCT) codes, ensuring that only approved items benefit from the scheme.
To prevent misuse, strict eligibility criteria have been introduced. Importing companies must be fully owned by residents of Gilgit-Baltistan, and every shipment must carry online approval issued by the Gilgit-Baltistan government through the Customs Computerized Clearance System.
Annual Cap and Allocation
The total exemption has been capped at Rs4 billion per fiscal year and will be granted on a first-come, first-served basis. Once the annual limit is reached, any further imports will be subject to standard taxes and duties. This mechanism encourages timely imports while keeping the overall fiscal impact under control.
Ensuring Local Consumption
A major focus of the policy is to ensure that imported goods are used only within Gilgit-Baltistan. The regional government has been made responsible for monitoring consumption, while customs authorities have been given the power to cancel exemptions in cases of misdeclaration or illegal transportation outside the region.
To strengthen enforcement, the Chief Collector of Customs (Enforcement) has been directed to actively prevent diversion, and the FBR will introduce a special tracking and monitoring system to clearly identify goods imported under this facility.
Temporary Suspension Clause
The policy also includes a safeguard clause allowing authorities to temporarily suspend the exemption facility if customs operations are disrupted due to protests, sit-ins, or road blockages. Such decisions will be made in coordination with provincial and regional administrations.
Why This Decision Matters
Gilgit-Baltistan faces unique geographic and logistical challenges that often result in higher prices and limited market access. By allowing tax-free imports through Sost, the government aims to:
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Reduce the cost of essential goods
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Encourage local trade and entrepreneurship
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Improve supply chain stability
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Strengthen the economic role of the Sost Dry Port
Overall, this initiative represents a meaningful effort to support Gilgit-Baltistan’s economy while maintaining transparency and accountability. If implemented effectively, it could bring lasting benefits to both consumers and local businesses in the region.