Shahbaz Aslam, Director of the Pakistan Furniture Council, has warned that the government's decision to allow duty- and tax-free imports of Chinese goods into Gilgit-Baltistan could severely damage local manufacturing. The policy, which permits conditional tax exemptions through the Sost Dry Port, risks creating an uneven playing field, he said, as domestic producers face high energy costs, heavy taxation, and expensive raw materials.
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Aslam cautioned that similar region-specific exemptions in the past led to large-scale diversion of goods into settled markets, weakening local industry and undermining the tax base. He highlighted enforcement challenges in Gilgit-Baltistan due to difficult terrain, limited monitoring capacity, and overstretched customs authorities, making strict compliance unlikely.
He stressed that Pakistan's furniture, wood products, and construction-related industries have sufficient capacity to meet domestic demand, including development projects in the region. Aslam urged the government to support local manufacturing through infrastructure, skills training, logistics, and freight subsidies, rather than relying on import-based concessions that promote smuggling, under-invoicing, and market distortions.
He concluded that sustainable development of Gilgit-Baltistan should prioritise local enterprise and long-term economic stability rather than policies that threaten national industry.
Source: www.leadpakistan.com.pk
