The Government of Nepal is preparing to formally propose the Korala border crossing in Mustang as a new international trade route with China, following recent monsoon floods that damaged infrastructure at the Rasuwagadhi checkpoint and halted trade through the key northern crossing.

Historically, Nepal’s overland trade with China has relied on two main points: Rasuwagadhi in Rasuwa district and Tatopani in Sindhupalchok. However, both routes have faced persistent disruption from landslides and flooding. While Rasuwagadhi is currently non-operational, Tatopani remains highly vulnerable to natural disasters.

In response, high-level discussions were held in Singha Durbar, Kathmandu, to explore Korala as a viable alternative. According to sources at the Office of the Prime Minister and Council of Ministers, officials from the Ministry of Industry, Commerce, and Supplies were involved in talks focused on establishing Korala as a permanent route for import and export activities currently handled through Rasuwagadhi and Tatopani.

“The aim is to ensure uninterrupted trade with China, even in times of crisis,” a senior government official said, adding that the government intends to formally request China’s cooperation in making Korala operational for cargo movement.

For the crossing to be functional at a commercial scale, Chinese authorities would need to authorize trade through Korala and provide essential logistics at the border, including customs inspection facilities and cargo handling infrastructure. Nepal is expected to initiate talks to assess China’s readiness to support these developments.

Read: In the Shadow of Migration, Business Blooms at Korala Border

Currently, only limited movement of essential goods takes place through Korala at the local level. The immigration office at the crossing was inaugurated in October 30, 2024 by Home Minister Ramesh Lekhak but remained closed until May 2025. The delay affected local traders who depend on the route. Although the immigration post is now open, other government services are yet to be established at the site.

A senior official from the commerce ministry noted that while the Chinese side is equipped with well-developed infrastructure, Nepal still lacks even basic facilities. "On our side, the quarantine setup is minimal. The meeting also discussed expanding and improving this capacity," the official said.

Tasi Nharbu Gurung, chairperson of the Lomanthang Rural Municipality, emphasized that inadequate infrastructure, security presence, and harsh weather conditions make it difficult to operate the Korala crossing efficiently. “Without proper buildings for security personnel and staff, and without electricity, it is challenging to maintain a continuous presence at the border,” he said.

Gurung noted that Korala lies 21 kilometers from Lomanthang. The nearest police post is at Nichung, 13 kilometers away, and due to the absence of shelter and freezing winds at the border, police personnel commute daily to the border point rather than staying overnight. In contrast, the Chinese side has a fully equipped immigration and customs complex, including accommodations for security personnel.

Read: Beni-Jomsom-Korala Road Nears Completion with 85% Progress

Despite these challenges, local leaders believe the route has significant potential for trade and tourism. Gurung said many Chinese tourists are eager to visit Nepal through Korala and are willing to spend up to 500 USD, but irregular operations at the Nepali immigration office pose a barrier.

Local trader Nangma Gurung, who has been involved in trade through Korala, said commerce would expand significantly if Nepal invested in the necessary infrastructure. Currently, locals import daily necessities, alcohol, furniture, and clothing from China, while goods such as rice, buckwheat flour, beaten rice, instant noodles, herbs, and pashmina could be exported from Nepal.

Gurung also emphasized that a functioning trade route through Korala could yield substantial economic benefits for the region. However, inadequate infrastructure at the border continues to limit opportunities. While residents of Upper Mustang’s Lo-Ghekar Damodarkunda and Lomanthang municipalities can obtain regular access permits to enter China, others require special passes.

Korala also holds religious tourism potential. According to Gurung, the border serves as one of the most direct routes to Mount Kailash and Lake Mansarovar, major pilgrimage sites for Hindus. From Lomanthang, it is approximately 40 kilometers to Dhongbasen in Tibet and about 600 kilometers onward to Mansarovar. If developed, Korala could offer the shortest and most convenient overland route from Nepal to these sacred destinations.

The road connecting Jomsom to Korala spans 110 kilometers and is currently a rough two-lane track. While China has developed a broad and modern road network on its side, Nepal is yet to match that standard. Gurung believes that with proper planning, Korala could accommodate large cargo containers, as the region features wide plains suitable for logistics expansion.

Read: Korala Border Gaining Popularity among Domestic Tourists

PM KP Oli meets a delegation of pepple's representatives of Mustang.