Mustang, September 17, 2025
Nepal’s trade with China has gained new momentum after the Nepal Rastra Bank extended the Letter of Credit (LC) facility to goods passing through Mustang’s Korala border. This decision comes at a critical time, as the two major trading points-Rasuwagadhi and Tatopani-remain closed due to floods and landslides.
Until recently, the Korala checkpoint in Upper Mustang was primarily used by locals for household and small-scale commercial supplies. Now, with LC clearance in place, Korala is emerging as Nepal’s third operational gateway for bilateral trade with China.
According to the Korala Customs Office, 151 electric vehicles and 65 containers loaded with clothes, slippers, and ready-made goods have already entered Nepal through the Nechung-Liji market route of Tibet. Chief Customs Officer Ramesh Khadka confirmed that exports have also begun, with Nepali products such as cane stools, statues, and branded jackets reaching Tibetan markets.
“Once customs procedures became smoother, Nepali goods also started moving north. Large containers are arriving daily,” Khadka said, noting that nearly 500 electric vehicles are expected to enter Nepal before the Dashain festival.
Local representatives are equally optimistic. Tashi Norbu Gurung, Chairperson of Lomanthang Rural Municipality, emphasized the need for regular operations rather than treating Korala as a temporary alternative. “The Chinese side has shown interest in continuous operation. For this, we must prioritize infrastructure and manpower,” he said.
The border, formally inaugurated in November 2023, had initially been limited to Mustang’s local trade. In the fiscal year 2081/82, more than 4,000 residents received entry passes for transporting goods.
At an altitude of 4,650 meters, the Korala border carries historical weight-it was closed in the 1960s after Tibet’s annexation by China and subsequent Khampa resistance movements. Today, it is being revived as a crucial trade corridor.
Traders stress the urgent need to strengthen supporting infrastructure. The Beni-Jomsom-Korala road, considered Gandaki Province’s lifeline, requires upgrades to handle container traffic, along with the establishment of electric vehicle charging stations.
For now, Korala stands as a vital link not only to ensure uninterrupted imports but also to open new avenues for Nepal’s exports to Tibet.
