Strategic Region on the Border of Pakistan and China Faces Economic Challenges

The region on the border between Pakistan and China, particularly Hunza in Gilgit-Baltistan, is experiencing an economic crisis caused by management and development issues. Once a strategically important center for cross-border trade, it now faces infrastructure deficiencies, administrative barriers, and growing social difficulties. Traders in the region are struggling due to strict requirements that hinder legitimate trade.

The challenges lie in the demands related to transactions for obtaining permits to cross the border, which complicate legal trade. This has raised concerns among the youth, whose earning opportunities depend on cross-border commerce. While trade faces difficulties, illegal activities continue to thrive.

The border crisis is also affecting energy supply issues. In January 2025, the residents of Hunza faced prolonged power outages, prompting them to block the Karakoram Highway (KKH) in protest. The protesters expressed dissatisfaction with the region’s insufficient power supply, despite its strategic importance and role in tourism. The lack of stable energy supply affected daily life, and the protests led to serious economic consequences. According to the Gilgit-Baltistan Chamber of Commerce and Industry, over 700 trucks with goods got stuck at the dry port of the China-Pakistan Economic Corridor (CPEC) due to the blockades, disrupting trade between Pakistan and China.

The government’s responses have mostly been formal, with the deputy commissioner of Hunza assuring that measures will be taken to improve the power supply situation. However, protesters expressed doubts about the effectiveness of these promises, given that past promises were not always fulfilled. Seasonal fluctuations in hydroelectric power generation are also being discussed as a potential reason for the insufficient supply.

The protest movement has evolved, expanding from initial demands for better power supply to a broader range of issues, including requests for representation in the local assembly and the redistribution of trade income from China. The people of Hunza have also raised concerns about tax policies, aiming to improve the region's economic situation.

The region is also facing infrastructure challenges. The electricity grids in Hunza are not always able to meet the growing demand, and integration with the national grid remains limited. Despite opportunities to use renewable energy sources such as solar and hydroelectric power plants, the implementation of such projects faces certain difficulties, including logistical and financial constraints. Follow “Zamin” news on “Telegram”