Abdul Ghani

The Federal Board of Revenue (FBR) cleared 531 consignments at the Sost Dry Port since the resumption of operations on the Karakoram Highway (KKH) on September 29 this year, according to documents available with Wealth Pakistan. This initiative, launched after the agreement between the federal government, Gilgit-Baltistan government, and Gilgit-Baltistan Supreme Council, has generated a total revenue of Rs2.96 billion after the clearance of 72 stuck-up consignments.

However, the total revenue collected since July 1, 2025 stands at Rs3.43 billion. As part of the clearance process, the Customs Appellate Tribunal cleared a total of 85 pending consignments and waived off all fines and penalties. The tribunal's decision paved the way for re-examination and reassessment of the items stuck up at the port. The decision expedited the clearance of consignments, including those with Import General Manifest (IGM) dates prior to February 2025.

The Board has cleared 72 consignments (from the gate), and is re-examing and reassessing 60 consignments, and has restricted 24 consignments due to the absence of required documentation under the Import Policy Order (IPO) 2022. Twenty consignments are pending due to the lack of Goods Declarations (GDs). Despite the progress, several challenges remain.

Delays in clearance have been attributed to the reluctance of some importers to meet the IPO requirements, including the provision of necessary No Objection Certificates (NOCs) and adherence to other regulatory procedures. Additionally, logistical challenges, such as unstable internet connectivity, harsh weather conditions, and inconsistent power supply, have further hindered the smooth operation of clearance processes at the port.

To address these issues, the Board has deployed additional personnel, including deputy collectors, superintendents, and inspectors, to facilitate the clearance of consignments in a more timely manner. These efforts, coupled with the ongoing collaboration between the FBR and Customs officials, are expected to improve the clearance process in the coming weeks. The FBR remains committed to ensuring the timely clearance of consignments at the port in order to facilitate trade between Pakistan and China.

By overcoming these challenges, the Board aims to streamline trade operations and contribute to the economic stability and growth in the region. Sost Dry Port, located on the Karakoram Highway (KKH), serves as a key gateway for trade between Pakistan and China. The port, strategically positioned in Gilgit-Baltistan region, has long been a crucial hub of cross-border trade, particularly for consignments moving between the two countries.

However, in recent years, the port has faced significant operational challenges, primarily due to the delays in the clearance processes and logistical issues. In February 2025, the federal government, in collaboration with the Government of Gilgit-Baltistan and Gilgit-Baltistan Supreme Council, signed an agreement to address these challenges and facilitate smoother clearance of consignments at the port, leading to the resumption of clearance process in late September 2025.

The agreement also included provisions to streamline the clearance process for consignments that had been stuck at the port for extended periods due to regulatory hurdles, missing documentation, or other delays. A major milestone in this effort was the intervention of the Customs Appellate Tribunal, which waived off fines and penalties for several consignments, enabling a faster re-assessment process.

Credit: INP-WealthPk