KHAPLU: Traders in Pakistan’s northern Gilgit-Baltistan region on Tuesday welcomed the government’s initiative to reopen a key border pass with China after closing it for over three years, saying that it would serve as a “good omen” for business activities in the area.
The historic Khunjerab Pass, located 5,000 meters above sea level, is a major trade route that links Pakistan to China and serves as an important gateway to South Asia and Europe for Chinese imports and exports. The first trade activity between the two countries under the China-Pakistan Economic Corridor (CPEC) began via the Karakoram Highway, which passes through Khunjerab, in November 2016.
The border was closed in 2019 to contain the spread of coronavirus between Pakistan and China, causing substantial financial losses to the local business community and triggering layoffs in the area. The route remained close for trade and travel for over three years before Chinese and Pakistani authorities last week announced their decision to reopen it. Prime Minister Shehbaz Sharif expressed happiness at the development, hoping it would bolster trade between the two allies.
As the Khunjerab Pass reopened this week, local traders expressed optimism the move would lead to the smooth functioning of trade between the two countries.
“The opening of the border is a good omen for traders as there is no big industry in Gilgit-Baltistan and this corridor is a blessing for the locals,” Nasir Raki, former president of the Gilgit-Baltistan Chamber of Commerce, told Arab News. “Due to the closure of the border for the last three years, local traders of Gilgit-Baltistan and workers associated with this border, including drivers and laborers, suffered a lot.”
Raki said businesspersons suffered immense losses as the border remained closed for over three years.
“Usually, the borders remain open for eight months [but] due to its closure, businessmen suffered losses in billions, which can’t be calculated,” he said, adding that the prices of items that were normally sold for $3.51 had shot up to $35 during the border closure.
However, he urged the government to abolish “unnecessary taxes” on traders, pointing out that Gilgit-Baltistan region is classified as a tax free-zone
Ali Imran, President Gilgit-Baltistan Chamber of Commerce, told Arab News the opening of the Khunjerab Pass was a “sigh of relief” for traders.
“Owing to the closure [of the border], many businessmen had to shut their businesses down, leading to losses,” he said.
Imran explained that the border was temporarily reopened for 12 days earlier this year to allow the movement of around 250 stranded containers from China. However, he said the customs office introduced an electronic import form (EIF) again, which had previously been waived off. The government uses the EIF to monitor the source and outflows of foreign remittances and check goods that are imported without foreign exchange through the State Bank of Pakistan.
“That’s why despite the opening of the border, some containers were stuck at Sost dry port [at the China-Pakistan border]. And we also faced losses,” Imran added.
Imran said he was unaware of exactly how much losses were incurred by businesspersons due to the closure, adding that a lot of traders gave up their businesses and did not share those figures with him.
Mehboob Rabbani, a businessman from Gilgit-Baltistan, said the reopening of the border would bring back prosperity to the region.
“Prosperity will come to Gilgit-Baltistan as the opening of the border will not only become the cause of the promotion of business activities, but all industries of the country will also become active,” he told Arab News, adding that the revenue will contribute to the national exchequer.