A long-overlooked 1982 government directive concerning border trade in Gilgit-Baltistan has recently come to light — a document that holds significant legal and economic implications for the region’s traders. Though not a formal treaty between China and Pakistan, this official communication by the Government of Pakistan laid the foundation for tax exemptions on trade via the Khunjerab Pass. For decades, however, the people of Gilgit-Baltistan (GB) have been denied the rights and exemptions guaranteed in this directive.
What the 1982 Directive Established
In an official letter dated 9 September 1982, the Additional Commissioner for Planning & Development (Northern Areas) confirmed that border trade between Gilgit-Baltistan and China would be exempt from customs duties and other taxes. The directive was addressed to Mir Ghazanfar Ali Khan of Hunza, acknowledging a prior request he had submitted on behalf of local stakeholders.
The letter explicitly states:
“Border trade with China has already been declared exempt from customs duty. The Khunjerab Pass has been opened for civil traffic, and trade across this border should primarily benefit the local population.”
This administrative decision was made in recognition of the unique geographical and historical context of the region, where communities have engaged in cross-border trade for centuries via the Silk Route.
No Bilateral Treaty, but Binding Intent
It’s important to clarify that this was not a formal treaty signed between the Chinese and Pakistani governments, but rather an internal Pakistani policy decision intended to facilitate trade in GB and strengthen Pakistan-China border commerce. Despite this, the directive carried legal authority within Pakistan and offered significant economic relief to local traders.
Violations of the Agreement Today
Unfortunately, the rights promised in this 1982 directive are being openly violated today. Traders operating at Sost Dry Port, the main hub of China-GB trade, face:
- Illegal imposition of customs taxes
- Monopolization by the National Logistics Cell (NLC)
- Harassment and restrictions by authorities
These actions starkly contradict the original purpose of the 1982 exemption, effectively turning a legal safeguard into a forgotten document.
Key Questions That Must Be Answered
As the directive was never repealed or officially annulled, it raises urgent legal and constitutional questions:
- Why are Gilgit-Baltistan traders being taxed if the 1982 exemption remains valid?
- Under what authority are restrictions being imposed that contradict a documented government order?
- How long will the people of GB be subjected to administrative decisions that disregard their economic rights?
Time for Recognition and Enforcement
The rediscovery of this directive should not merely be a historical footnote. It must serve as a call to action. The people of Gilgit-Baltistan have the right to demand enforcement of this directive and an end to the current regime of unlawful taxation and control. What is at stake is more than trade — it is the principle of legal recognition, regional equity, and economic justice.
The Government of Pakistan must be held accountable for upholding its own laws and commitments to the people of GB. Ignoring the 1982 directive any longer would be not only a legal failure but a moral one.
