By Dr. Dipendra Shrestha (KATHMANDU, 21 May 2025) – Nepal has set a Long-term Vision of “Prosperous Nepal, Happy Nepali” embarked in Fifteenth Five Year Plan, 2020 to achieve in 25 years. The very first Long-term Goal to achieve the vision of “Prosperous Nepal”, among four, was “Accessible modern infrastructure and intensive connectivity”. This profoundly signifies the immense necessity and national thirst of Trans-Himalayan Multi-dimensional Connectivity Network, often referred to as Trans Himalayan connectivity as Nepal is already heavily linked with the Southern neighbor India via highways in plain land, but connectivity is still to improve with the Northern neighbor China as two countries share border of high mountains beautiful enough to look at but difficult enough too.
Nepal should prioritize to build reliable and comfortable Trans Himalayan connectivity in backdrop of following situations and beyond:
- Nepal is eager to transform from Land-locked to Land-linked country. Previously Nepal was linked to the entire world through single gateway of India, but now with the Trade and Transit Agreement signed with Peoples’ Republic of China in 2016, we are linked to the world via China also. During political junctures, Nepal has been suffering from Indian blockade several times. Our destiny of Blockade by India is now a past, no blockade is possible in future as we have been connected to entire world via China though the connectivity is still to be enhanced and strengthened further.
- From Ancient times, Nepal was a trade linkage for South Asia and China via Lhasa under Silk road connectivity. Kathmandu was an important base station until human civilization developed steam engines for water way and road way transportation. The prosperity of Kathmandu up to Eighteenth century was partly due to the trade between South Asian countries and Lhasa. Even traders as far as from Afghanistan used the Kathmandu base for trading Lhasa and China mainland.
- Effective from December 1, 2024, China announced duty-free access to over 8,000 Nepali products. The announcement is being heavily enjoyed by the Nepali traders on tea, medicinal herbs and Rudrakshya beads. Nepal can utilize the opportunity in more effective trans Himalayan transportation facilities. Whereas with Southern neighbor, there has been many incidences that India unreasonably increased tariff when Nepal produces larger mass of ginger, tea, cardamom etc. Evidence reveals that Nepal export with Northern neighbor is more reliable and sustainable which demands stronger Trans Himalayan connectivity.
- Nepal is currently working in five important domains of Trans Himalayan Connectivity.
- Road connectivity :
- Nepal is shortly to connect China via 7 Trans Himalayan roadways. The most important one among them, 125 km long Kathmandu – Rasuwagadhi – Kerung is under use since Nepal blockade 2015 and being upgraded. The distance and travel time of this highway will be significantly reduced after implementation of Tokha -Chahare tunnel which is the first point of BRI Framework agreement signed on December 4, 2024. The tunnel will be 4.175 km long, 10 m wide with 8.5 m carriage way. Pre-feasibility study has been completed with the technical support from Chinese side. Environment Impact Assessment (EIA) study was permitted in 2023 September by Ministry of Forest and Environment, and Detail Project Report (DPR) is underway.
- The first Trans Himalayan Kodari-Zhangmu cross border connected by Araniko Highway resumed service that was shut down following Gorkha earthquake 2015. Three north–south corridors – Koshi Economic Corridor, Gandaki Economic Corridor and Karnali Economic Corridor projects are being built which will connect Chinese port to Indian port.
- Railway connectivity :
- One hundred and seventy km long Kathmandu- Kerung Railway connecting is the flagship project for Trans Himalayan Connectivity. Feasibility study of the project is underway with Chinese technical support to complete in June 2026, with report of 60% completion at the end of 2024. The railway project is highly ambitious as the project lining will have 98.5% tunnels and bridges running under and over rocky Himalayan ranges. Soon after the completion of DPR, two countries will negotiate to construct it in the soonest.
- Air connectivity :
- Nepal flights connecting different cities of China has increased to 98 per week from 70 flights previously this year. China Southern Airlines has announced to fly 46,000 seats per month in Guanzhou to Kathmandu route, that is 13,000 higher in comparison to last year. Sichuan Airlines started chartered flights between Pokhara to Chengdu from March 2025. Himalayan Airlines is operating Kathmandu flights to Beijing, Shanghai, Chongqing and Qingdao. Tibet Airlines is also operating Kathmandu – Lhasa route.
- Energy transmission:
- Nepal China cross border transmission line of 400 KV has been negotiated and feasibility study is going on. After the transmission line be established, significant Chinese investment will land in fascinating hydropower sector of Nepal. Nepal has already benefited from Chinese investment and construction work in various hydropower projects of Nepal including Upper Marsyangdi A Hydropower station of 50 MW, fully constructed and power generated by Power China since 2016; Sanjen Khola Hydropower station of 78 MW constructed and power generated by China Harbor Engineering since April 2025.
- Telecommunication transmission :
- Nepal has succesfully launched Cross border optical fiber link to China via Rasuwagadhi, that has reduced data transfer cost as well as enhanced quality. This also improved resilience of digital sovereignty as previously Nepal was solely depended on single linkage for worldwide internet connection.
- NTC and NCell has upgraded our system to 4G with the technical support from Huwai. Also Nepal extended telecommunication service to rural areas of Nepal in partnership with ZTE via CDMA and 3G internet.
- With the advancement of Trans Himalayan connectivity, Nepal will basically grab following five opportunities among many:
- Decrease Trade cost and attract Chinese investment in Nepal
2023-24 fiscal year witnessed Nepal import worth NRs 272.81 Billion from China and NRs 2.4 Billion export, among them land route import was only 92.62 NRs Billion. Soon after the construction of all season Trans Himalayan road and railway, the import will significantly reduce transportation cost and increase trade volume. This will open immense opportunities for Chinese entrepreneurs to invest Nepal to produce product of their need. Same time, Zero tariff policy of China will inspire to produce many Nepali products with the ease and cheapness of the Trans Himalayan transportation.
- Export Typical Nepali products to China
Due to geographical diversity of Nepal, it has capacity to produce genuine agricultural products in high hill altitudes which is not found elsewhere. The high mountain medicinal herbs, vegetables, tea etc carry superior quality which can find fascinating market in China where affordability of citizens is tremendously escalating. Shanghai Ziyan Food limited has started work for investment to import Nepali buffalo meat into China in high volume, with the installed capacity of 5,000 buffaloes per day.
Oat Grass from Chitwan has already been exported to feed Tibetan flocks with the improvement of Trans Himalayan roadways since last 2 years. Tibet has limited grass and fodder production whereas production is very limited deu to high and rocky land.
- Boost Tourism of Nepal
In 2019, Nepal welcomed 169,543 Chinese tourists, the ever record, but COVID19 hindered increment. The data inclined after COVID19 and welcomed 101,879 Chinese tourists in 2024. Nepal should thank director Teng Huatao for the release of his movie Up In the Wind in 2013 showcasing beautiful scenes of Kathmandu, Pokhara and Chitwan that has significantly increased Chinese tourist attraction to Nepal.
In 2024, more than 146 Million Chinese trips recorded abroad. Standard and low cost Trans Himalayan connectivity will definitely attract their trip to Nepal, which will significantly contribute Nepal’s fascinating tourism industry.
- Trade linkage to South Asia
- Our immediate neighbors China and India still have many border disputes, unfortunately the disputes have often opened into fatal. Even they fought wars on the border issues in 1962 war and couple of years back too. But still trade linkage between the two giant neighbors is very huge and continuously increasing. In 2024, India imported goods and service worth $113.45 Billion from China, 11.5% jump to the previous year when it worthed $101.73 Billion. Same year, India exported worth $14.25 Billion, 14.4% dip from the previous year worth $16.66 billion. This indicates that the huge trade between the two giants need a nearer, cheaper and more reliable trade route beyond their tension-border. The most practical one is indeed a Nepal linkage. After completion of Kathmandu-Terai fast track being constructed by Nepal government and Trans Himalayan Railway, China and India border will be just 3 hours far in maximum. The huge China – India trade linkage via Nepal will benefit Nepal in an unimaginable way along with the trading neighbors.
- International Trade through China
- Trade and Transit Agreement in 2016 paved Nepal access to the world via China linkage using 4 Chinese sea ports – Tianjin, Shenzhen, Lianyungang and Zhanjiang and 3 land ports – Lanzhou, Lhasa and Shigatze; whereas Nepal was only limited to India linkage previously. Nepal was compelled to travel and trade even with Northern countries and Europe whereas via India despite it is in the South, the long route definitely increased trade time; and definitely cost. September 2023 marked the first import from third countries via Chinese port – 15 tons of Turmeric powder arrived Nepal from Vietnam using Trans Himalayan road way via China ports.
- The concept of Trans Himalayan connectivity was initiated by honorable Prime Minister KP Sharma Oli, as a part of action to fulfill national dream of “Prosperous Nepal, Happy Nepali”; which seems to be very significant and a right choice. The faster the connectivity is established, the closer the dream comes true.
Dr. Shrestha is Member of Planning Commission of Bagmati Province, Nepal and Member of Department of Foreign Affairs of CPN UML.