Kathmandu, October 28:Trade through the Korala checkpoint in Upper Mustang has picked up pace, recording goods worth over Rs 5.27 billion in just three months of the current fiscal year. The crossing, recently opened for commercial use, is quickly becoming Nepal’s new gateway for trade with China.

Data from the Department of Customs shows Nepal imported Rs 5.27 billion worth of goods via Korala between mid-July and mid-October, accounting for around 5 percent of the country’s total imports from China. Electric vehicles, garments, and fruits topped the import list. Exports to China from this route stood at Rs 9.13 million, roughly 5 percent of Nepal’s total export earnings to its northern neighbor.

Commercial trade officially began through Korala on September 8, 2025, after the two governments agreed to open the Mustang border to ease imports before the festive season. The Department of Customs has since set up an Automated System for Customs Data (ASYCUDA), and Nepal Rastra Bank has started processing letters of credit for trade through the new route.

Despite the enthusiasm, poor road conditions on the Nepali side have posed serious challenges. The Mustang stretch remains narrow and uneven, making it difficult for large vehicles to operate. In contrast, China has already built a double-lane blacktopped road and a modern customs facility on its side of the border.

Before Korala came into use, Nepal’s trade with China relied mainly on the Rasuwagadhi and Tatopani crossings. The Rasuwagadhi route has been closed since mid-July after floods in Tibet’s Lhende River destroyed the cross-border bridge, while the Tatopani point continues to face disruptions due to landslides along the Araniko Highway. These recurring obstacles have pushed the government to promote Korala as an alternative trade corridor.

During the same period, imports through Rasuwagadhi amounted to Rs 388.1 million, while those through Tatopani reached Rs 9.44 billion. Exports through both routes were minimal.

Nepal and China had agreed in 2016 to enhance trade through six border points—Tatopani, Kerung, Kimanthanka, Korala, Yari, and Olangchungola—but only a few have become operational so far. Kimanthanka, Yari, and Olangchungola are still awaiting full-scale commercial activity.

People’s News Monitoring Service