The Korala border point in Upper Mustang is rapidly becoming a viable alternative trade route for Nepal-China commerce, recording transactions worth Rs 5.27 billion in the first three months of the current fiscal year (FY).
Data from the Department of Customs (DoC) shows Nepal imported goods worth Rs 5.27 billion via Korala between mid-July and mid-October, representing 5.06 percent of total imports from China. Key imports included electric vehicles, clothing, and fruits.
Nepal earned Rs 9.13 million from exports through the checkpoint—4.89 percent of total exports worth Rs 186.4 million to China during the same period.
The route was opened following a bilateral agreement aimed at easing trade disruptions ahead of Nepal’s festival season. Commercial trade officially began on September 8, 2025. To facilitate smooth operations, the DoC has installed the ASYCUDA electronic customs system, and Nepal Rastra Bank has begun issuing letters of credit through the checkpoint.
However, logistical challenges persist. While China has built a paved two-lane road and a modern customs office, the Nepali side faces narrow and deteriorated roads, restricting the movement of large trucks.
Korala’s importance has grown following the closure of the Rasuwagadhi border due to devastating floods in Tibet’s Lhende River, and the unreliable operation of the Tatopani border point caused by frequent landslides along the Araniko Highway.
During the review period, imports through Rasuwagadhi were recorded at Rs 388.10 million, while Tatopani accounted for Rs 9.44 billion. Exports through these traditional land routes remained negligible.
Under the 2016 Nepal-China protocol, six border points—Tatopani, Kerung, Kimanthanka, Korala, Yari, and Olangchungola—are designated for bilateral trade. Of these, Kimanthanka, Yari, and Olangchungola are still not operational for commercial use.
