The Korala border crossing has become a critical trade route following the disruption of the Rasuwagadhi pass, boosting local commerce in Mustang.
Read the full reportKorala border crossing sees surge in trade and tourism

The Korala border crossing in Mustang has become a critical transit hub for trade and tourism after the Rasuwagadhi border route closed due to flood damage along the Bhote Koshi River on August 26, 2026. This disruption has redirected heavy cargo, including electric vehicles, toward the Kaligandaki corridor, fueling economic growth across Myagdi and Mustang. Local business owners report increased patronage in hospitality and retail sectors, while farmers in Parbat have seen demand for agricultural produce double. Despite this influx, stakeholders like Myagdi Chamber of Commerce and Industry president Suvin Shrestha stress that realizing the route's full potential requires urgent government investment in road infrastructure.
Concerns persist regarding the narrow, deteriorating condition of the Pokhara-to-border road, which complicates logistics. Reports suggest that authorities must implement comprehensive upgrades, including landslide mitigation and improved traffic management. While tourism is recovering, operators note that total visitor numbers remain below pre-flood levels due to lingering safety anxieties, and some local traders caution that overall trade volume has yet to meet high expectations.
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