Major Pakistani steel producers have urged the Federal Board of Revenue (FBR) to introduce safeguards on duty- and tax-free Chinese imports cleared through the Customs Dry Port Sost for consumption in Gilgit-Baltistan (GB).
In a letter to the FBR, the Pakistan Association of Large Steel Producers (PALSP) opposed the implementation of S.R.O. 2488(I)/2025, issued on December 24, 2025, which allows tax-free imports from China via Sost. The association proposed that such imports should be permitted only against advance pay orders submitted to the FBR as collateral, to be released once consumption certificates are provided by GB tax authorities.
The industry warned that without such controls, duty-free goods could be diverted into taxable areas, causing serious harm to local manufacturers. PALSP said misuse of tax exemptions has already been observed in other regions, including former FATA and PATA areas, with negative consequences for the steel sector.
The association added that while limited exemptions for raw materials or scrap could be considered to support economic activity in GB, finished and intermediate steel products should not be allowed under tax-free schemes. Pakistan already has surplus steel capacity, and domestic producers are capable of meeting GB’s construction steel demand, the group said, calling on the FBR to consult local industry before finalizing any decision.
