The governments of Nepal and China have agreed to reopen the Nepal-China border at Korala, located in Mustang district to relief to traders importing goods from China ahead of the upcoming big festivals.
The opening of this border has been taken as an alternative to the commercially important Rasuwa Gadhi and Tatopani border points, which have remained closed as a result of flooding and landslides during the monsoon.
Korala is a high-altitude border crossing and mountain pass located in Nepal’s Mustang district, situated on the border with the Tibet Autonomous Region of China. It is considered one of the lowest drivable passes in the Himalayas. Reopened in November 2023, Korala serves as one of the actively functioning border crossings between Nepal and China, though it is still developing, with local authorities pushing for improved infrastructure like a dry port and customs facilities.
The border point at Korala is one of the oldest routes between the two regions. It was historically used for salt trade between Tibet and Nepalese kingdoms. Up until 2008 when Nepali monarchy was abolished, Upper Mustang was the Kingdom of Lo, an ethnic Tibetan kingdom that was a suzerainty of Kingdom of Nepal. The suzerainty allowed for a certain level of independence in local governance from the Nepalese central government.
This is the first time the Korala border will be used for commercial purposes. Previously, it was opened only on a seasonal basis, mainly for local residents of Mustang who share cultural ties with Tibet.
The Customs Department stated that all necessary infrastructure has been put in place, and a team of four officials has been assigned to manage operations there.
The closure of Rasuwa Gadhi has left hundreds of containers stranded at Kerung in China, awaiting entry ahead of the festive season starting next month. These containers are likely to be diverted to the Korala border instead.
However, the narrow and dilapidated roads on the Nepal side through Mustang make it difficult to transport larger trucks. In contrast, the Chinese government has already constructed a paved two-lane road and established a modern customs office on its side.
Targeting the Dashain and Tihar markets, traders have already started importing Chinese goods via air and sea routes, which is significantly more expensive than transporting by road. The operation of Korala Customs is expected to bring much-needed relief to businesses ahead of the festive season.
As of now, Nepal and China have been holding bilateral trade via land routes through the borders of Rasuwa Gadhi and Tatopani. The Rasuwa Gadhi border was shut after devastating floods in Tibet’s Lhende River in mid July swept away the cross-border bridge. According to government authorities, it will take time as significant damage occurred on the Nepali side. Although the Tatopani route is open for trading, the frequent landslide on Araniko Highway has made the smooth operation of the border point uncertain.
