Banking News – The flood in the Bhote Koshi on Bhadau 10 caused massive human and physical damage, destroying many structures connected to the customs offices of Nepal and neighboring China at the Rasuwa border point. As the border areas on both sides suffered extensive damage, the possibility of the Rasuwa border point known as the “lifeline” connecting Nepal and China coming into operation immediately is very low, resulting in not only the movement of citizens of both countries but also foreign trade coming to a complete halt.

Since the flood destroyed roads, bridges, and all important infrastructure connected to customs administration on both sides, rebuilding and operating this border point immediately is complex not only geographically but also practically. On the other hand, along with the flood in the Bhote Koshi, the Tatopani border point has also been obstructed for some time.

Not only the Rasuwa and Tatopani border points connected to neighboring China by road have been obstructed. The Korala border point in Mustang, which had been in operation earlier, is also currently halted after roads and bridges and other structures were damaged in various places due to continuous floods and landslides from Ashoj 8 to 11. As the festivals of Nepalis Dashain, Tihar, Chhath, and others — are about to arrive at their doorsteps, the obstruction of all three major border points connecting to China has, on one hand, brought foreign trade between the two countries to a near standstill. On the other hand, goods brought targeting the festivals have also been stuck on the Chinese side.

Ashok Shrestha, former President of the Nepal Himalayan Trans-Border Commerce Association, stated that with all three main border points connecting to China halted, import-export between the two countries has come to a standstill.

“The flood in the Bhote Koshi on Bhadau 10 completely devastated the Rasuwa border point. As a result, there is no certainty as to when that border point will come into operation,” he said. “Shortly after the flood in the Bhote Koshi, the Chinese side also halted import-export through the Tatopani border point, leaving the main border point with China almost completely halted.”

He complained that businessmen and traders have been severely affected as goods and supplies being brought from China targeting the festivals have been stuck there. “Goods and materials imported from China by traders through loans have been stuck on Chinese soil. This is increasing the burden of debt on traders, while on the other hand, uncertainty remains about when the supplies will arrive,” he said. “The government needs to make diplomatic efforts with the Chinese government to immediately open the Tatopani border point.”

With the Rasuwa and Tatopani border points obstructed, goods and supplies had recently been imported and exported from the Chinese side through the Korala border point in Mustang. However, after roads and bridges and other structures around the Kaligandaki Corridor were damaged due to continuous rainfall from Ashoj 8 to 11, foreign trade through the Korala border point has also currently stopped.

Ramchandra Parajuli, General Secretary of the Nepal Himalayan Trans-Border Commerce Association, stated that with the obstruction of the Rasuwa, Tatopani, and Korala border points known as the main lifelines connecting to China foreign trade with China has been shattered.

“Currently, the access of the main roadways connecting to China has been broken,” he said. “After the flood and landslide in the Bhote Koshi, more than 700 containers that were being brought through the Rasuwa and Tatopani border points from the Korala border point have been stuck on Chinese soil due to road obstruction.”

General Secretary Parajuli claimed that goods and materials worth approximately Rs 5 arab being imported from the Chinese side have been stuck at the Chinese border point. “It is time for the Government of Nepal to make adequate diplomatic efforts with the Chinese government to open the Tatopani border point. The longer the delay, the greater the impact,” he said. “Since structures including roads and bridges have been damaged in various places toward the Korala border point as well, the government needs to immediately repair and operate the roads and bridges.”

This Is the Foreign Trade of the Main Border Points

According to the Department of Customs, in fiscal year 2082/83, goods and materials worth Rs 45 arab 73 crore 82 lakh 64 thousand were imported through the Rasuwa customs border point. In that fiscal year, this customs point’s share of total imports was 2.18 percent. Similarly, in the same fiscal year, goods and materials worth Rs 89 crore 46 lakh 1 thousand were exported to foreign countries through the Rasuwa customs point.

In fiscal year 2081/82, goods and materials worth Rs 85 arab 23 crore 23 lakh 60 thousand entered through the Rasuwa customs point. In that fiscal year, the share of imports through that customs point in total imports was 4.72 percent. Similarly, in that fiscal year, goods and materials worth Rs 2 arab 4 crore 52 lakh 61 thousand were exported through this border point.

Not only the Rasuwa border point, but import-export has also been taking place through the Tatopani customs border point connected to China by road. According to the Department of Customs, in fiscal year 2082/83, goods and materials worth Rs 47 arab 48 crore 61 lakh 18 thousand entered Nepal through the Tatopani border point. This border point’s share of total imports across Nepal was 2.27 percent. In that fiscal year, exports through this border point were negligible.

Similarly, in fiscal year 2081/82, goods and materials worth Rs 50 arab 39 crore 58 lakh 62 thousand were imported through this border point. In this fiscal year, this border point’s share of total exports was 2.79 percent. Similarly, exports through this border point were almost zero. In fiscal year 2082/83, goods and materials worth Rs 14 arab 40 crore 67 lakh 28 thousand entered through the Mustang border point. This border point’s share of total imports was 0.69 percent. In that fiscal year, goods and materials worth Rs 20 crore 55 lakh 75 thousand were exported through this border point. This border point’s share of exports was only 0.07 percent.

Minister for Infrastructure Development Sunil Lamsal met with Chinese Ambassador to Nepal Wang Maoming on Ashoj 9 and requested necessary support from the Chinese government on matters including the reconstruction and development of flood-damaged infrastructure in Rasuwa and the reopening of the Rasuwagadhi-Kerung border point. Minister Lamsal requested the Chinese side to take necessary initiatives to operate the Tatopani and Korala border points as soon as possible, which are connected to more than 650,000 Nepali citizens. Minister Lamsal called for necessary coordination from the Chinese government on matters including facilitating contact and smooth movement of nearly 600,000 Nepali citizens with the state and effective operation of the Korala and Tatopani border points.

Chinese Ambassador Wang Maoming stated that a special study could be conducted for the reconstruction and operation of the Rasuwagadhi border point, a major trade hub of Nepal, and long-term and effective infrastructure could be built. Ambassador Wang, informing that the Chinese government is positive about operating the Korala and Tatopani border points, expressed commitment to take initiatives for necessary coordination and support if the Government of Nepal sends a special proposal regarding the reconstruction and operation of the Rasuwagadhi border point.