The trade corridor between Pakistan and China via the Khunjerab Pass is operating at full capacity, with significant growth in bilateral and regional commerce. According to recent data from customs authorities in Gilgit-Baltistan, exports of Pakistani agricultural and herbal products to China and Central Asian states have surged this year.
The Sost Dry Port has cleared a record number of import consignments from China, generating substantial revenue despite previous disruptions.
Surge in Exports and Revenue Collection
Exports from Pakistan include oranges, mangoes, cherries, pine nuts (chilgoza), mushrooms, local herbs, rice, tea, herbal medicines, and dried apricots, with volumes increasing notably.
Pakistan Customs Collector for Gilgit-Baltistan, Shahid Jan, highlighted that 1,774 consignments imported from China were processed at Sost Dry Port up to March 2026, yielding Rs10.16 billion in customs revenue.
This marks a record achievement, especially considering the port’s 70-day closure last year due to a traders’ protest in Gilgit-Baltistan that halted cross-border activities.
Shift in Import Routes and Future Concerns
Import patterns are evolving, with items such as electric vehicles, specialised mining equipment, and agricultural machinery now routed through Khunjerab instead of Karachi port.
Trade under the Multimodal Transports Internationaux Routiers (TIR) system continues smoothly for Central Asian destinations, and shipments from third countries destined for Central Asia are increasingly transiting via Pakistan and China.
Local traders have expressed concerns over the non-implementation of Prime Minister Shehbaz Sharif’s announced tax exemptions on certain imported goods for domestic use, calling for swift action to support local consumption and trade growth.