The Pakistan Association of Large Steel Producers has urged the Federal Board of Revenue (FBR) to demand advance pay orders from importers of duty-free Chinese steel products cleared through the Customs Dry Port at Sost for consumption in Gilgit-Baltistan.
The demand follows FBR’s notification of S.R.O. 2488(I)/2025 on December 24, 2025, allowing over 2,403 Chinese goods to be imported duty- and tax-free through Sost. The industry has opposed the exemption, citing risks of misuse and diversion to taxable areas.
In a letter to FBR, the association proposed that importers submit advance pay orders as collateral to the FBR, to be released only after consumption certificates are issued by Gilgit-Baltistan tax authorities.
The association warned that failure to introduce safeguards could harm local industry, particularly steel, as duty-free goods may be sold outside Gilgit-Baltistan. It said Pakistan has surplus steel production capacity and can meet Gilgit-Baltistan’s construction steel needs domestically.
The industry suggested that if the objective is to boost economic activity in Gilgit-Baltistan, tax exemptions should be limited to raw materials or scrap, while finished and intermediate goods should be excluded due to past misuse of similar concessions in other regions.
The steel producers urged the FBR to consult local industry stakeholders before implementing or expanding tax-free import schemes through the Sost Dry Port.