By Syed Shamsuddin
Genesis and Raison d’Être of the Border Pass System
The inception of the Border Pass System can be traced back to the construction of the Karakoram Highway (KKH) and the signing of the first Border Protocol Agreement between Pakistan and China. Recognizing the deep-rooted historical ties and the enduring legacy of the ancient Silk Route, both governments agreed to grant the people of Gilgit-Baltistan and the Xinjiang Autonomous Region of China unhindered access across the border.
This initiative aimed to foster people-to-people interactions, revitalize age-old trade routes, and strengthen socio-economic cooperation. By facilitating seamless cross-border movement, the system sought to bolster economic integration and reinforce cultural and commercial bonds that had historically flourished along these trans-Himalayan trade corridors.
To institutionalize and regulate this framework, specialized trade bodies were established on both sides. In Gilgit-Baltistan, the Northern Areas Traders Cooperative Limited (NATCL) was formed to oversee and coordinate barter trade operations. Its counterpart in Kashgar, Xinjiang, was set up under the jurisdiction of Chinese authorities, ensuring structured exchange through an annual trading mechanism. By reinstating an ancient yet time-tested model of trade, the Border Pass System emerged as a pivotal tool for regional economic empowerment.
Policy Reforms and the Evolution of the Border Pass System
Tax Exemptions and Policy Shifts in the Border Trade System
The Central Board of Revenue (now the Federal Board of Revenue) of Pakistan issued SRO No. 2(1)/70 dated January 1, 1970, granting complete tax exemption on goods exchanged under the barter trade system. This bold initiative aimed to enhance the socio-economic well-being of the people of Gilgit-Baltistan by fostering unhindered cross-border trade with Xinjiang.
This exemption remained in effect for nearly two decades. However, with the decline of NATCL, the government withdrew this exemption through SRO No. 492(1)/88, dated June 26, 1988, coinciding with the opening of the Khunjerab Border to general tourists in 1986. This marked a significant policy shift, altering the dynamics of cross-border trade.
Further reforms led to a new border pass system, expanding eligibility beyond NATCL members to include all indigenous residents of Gilgit-Baltistan, enabling direct economic engagement across the border. This inclusive approach aimed to ensure broader access and financial upliftment for the region.
Opening of the Khunjerab Border and Expansion of the Border Pass System
Prior to 1986, the Khunjerab Pass remained closed to general tourists, restricting movement to barter trade caravans. However, with the official opening of the border to the public that year, a significant milestone in Pakistan-China connectivity was reached.
The border pass privileges were extended to local residents, enabling them to visit Kashgar, access markets, foster cultural exchanges, and enhance economic opportunities. This shift acknowledged the need for greater mobility and economic engagement, reviving the spirit of the ancient Silk Route.
Controversy Over New Border Pass Regulations: Favoring the Elite at the Expense of the Masses
A video by Roshan Din Diameri, circulating on social media, has exposed a controversial amendment to the Standard Operating Procedures (SOPs) for border passes in Gilgit-Baltistan. Under the new policy, only those who have conducted business transactions exceeding PKR 5 million (50 lac) are eligible for border passes.
This exclusionary policy effectively shuts out the majority of the region’s population, particularly small-scale traders, daily wage earners, and ordinary citizens who rely on cross-border movement for their livelihoods. By restricting access to only the affluent few, this policy violates the principles of economic inclusivity and exacerbates socio-economic disparities.
The abrupt policy shift has triggered widespread outrage, raising concerns over its intentions and long-term consequences. If implemented, it would marginalize struggling communities, concentrate economic benefits in the hands of the elite, and undermine the historic spirit of cross-border cooperation.
A Blatant Injustice: Systematic Exclusion of Gilgit-Baltistan’s Poor from the Border Pass System
This unjust policy shift appears to cater to vested interests, depriving the less privileged people of Gilgit-Baltistan of their legitimate right to a border pass. The raison d’être of the border pass system was always to empower the common people by enabling modest trade and economic engagement with Xinjiang.
By imposing elitist restrictions, the new policy contradicts its original intent, transforming an inclusive system into an exclusive privilege for the wealthy. The timing of this decision is particularly troubling, as there is an urgent need to introduce reasonable baggage allowances for local border-pass holders, allowing them to sustain their livelihoods through trade.
Instead of facilitating economic survival, the authorities have taken a regressive step, ensuring that only a handful of affluent traders benefit while the majority remains disenfranchised. If this policy is not reversed, it will entrench economic disparity, weaken historic trade ties, and deprive ordinary citizens of Gilgit-Baltistan of their rightful access to cross-border economic opportunities.
Urgent Call for Fairness: Restore Equal Access to Border Passes
Given the gravity of the situation, it is imperative that the border pass issuance process be revised, simplified, and made accessible to the poor and marginalized people of Gilgit-Baltistan. The current exclusionary policy deepens economic disparities and contradicts the fundamental purpose of the border pass system.
The authorities must act without delay to reverse this unjust restriction and ensure that all eligible residents, regardless of financial standing, have equal access to border passes. Policies should serve the public interest, not just a privileged few. Failure to address this issue will undermine trust in governance, weaken historic socio-economic ties with Xinjiang, and alienate the local population.
The right to trade and economic mobility must not be dictated by wealth and privilege—it is a fundamental entitlement of the people of Gilgit-Baltistan that must be upheld and protected at all costs.
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