The Pakistan Association of Large Steel Producers has urged the Federal Board of Revenue (FBR) to mandate advance pay orders from importers of duty-free Chinese steel products cleared via the Sost Customs Dry Port for consumption in Gilgit-Baltistan.
The industry warned that without adequate safeguards, these imports might be redirected to taxable regions, threatening local production and destabilizing markets.
Officials emphasized that Pakistan’s steel sector is fully capable of meeting regional demand without depending on imported finished goods.
The demand for advance tax guarantees comes after the FBR issued S.R.O. 2488(I)/2025 on December 24, permitting more than 2,403 Chinese goods to enter Gilgit-Baltistan duty- and tax-free.
In a letter to the FBR, the association recommended that importers provide an advance pay order as collateral, which is to be returned only after Gilgit-Baltistan tax authorities issue consumption certificates.
The industry emphasized that this system would guarantee imported steel products are used exclusively within the designated region, thereby preventing unlawful resale or smuggling into other markets. They affirmed that such safeguards are essential to shield domestic producers from unfair competition.
Officials suggested that tax exemptions should apply only to raw materials or scrap, excluding finished and intermediate goods, due to previous misuse of similar concessions in other regions.
Additionally, the industry called on the FBR to consult local stakeholders before introducing or expanding tax-free import programs via the Sost Dry Port.
Producers stressed that involving domestic manufacturers would help create policies that promote regional economic growth, protect local industry, and maintain proper fiscal oversight.
MOST READ | Carbon Footprint Emerges as Key Factor in Thailand’s Food Trade
