Kathmandu Lhasa Bus Service to Resume Operations
25th January 2026, Kathmandu
Nepal and China have reached a historic agreement to resume the Kathmandu Lhasa bus service, reopening a vital transportation link between the two nations that has faced periodic suspensions over the last two decades. The landmark decision was finalized during the third meeting of the China-Nepal Coordination Mechanism on Border Trade and Cooperation, held on Magh 6 and 7 (January 20 and 21, 2026) in Lhasa, Xizang (Tibet) Autonomous Region.
Kathmandu Lhasa Bus Service
The agreement to revive the cross-border bus route is part of a broader push to enhance trans-Himalayan connectivity. Both nations explored extensive opportunities for trade, investment, and infrastructure coordination, aiming to transform Nepal from a land-locked to a land-linked country through the framework of the Trans-Himalayan Multi-Dimensional Connectivity Network.
Strategic Impact on Tourism and Trade
The resumption of the Kathmandu–Lhasa bus service is expected to significantly boost cross-border connectivity. By providing a reliable land-based alternative to expensive air travel, the service will facilitate the movement of tourists, religious pilgrims, and small-scale traders.
For the tourism sector, the bus service reopens the classic overland route that has traditionally attracted adventure travelers and those visiting sacred sites like Mount Kailash and the Potala Palace. From a trade perspective, the link allows small and medium enterprises (SMEs) to transport goods more efficiently between Kathmandu and the Tibetan border regions, effectively reducing logistical overheads and fostering new business partnerships.
Key Outcomes of the Lhasa Meeting
The Nepalese delegation, led by Dr. Ram Prasad Ghimire, Secretary of the Ministry of Industry, Commerce, and Supplies (MoICS), and the Chinese side, headed by Chao Peng, Vice Chairman of the Xizang Autonomous Regional Government, achieved consensus on several critical fronts:
Border Infrastructure: Both sides agreed to expedite the construction of the Tokha-Chhahare Tunnel and the Rasuwagadhi-Syaphrubesi road, which are essential for smooth bus operations.
Customs and Trade: The meeting covered the implementation of the Authorized Economic Operator (AEO) certification to streamline customs for trusted traders.
Inland Clearance: Progress was made on developing Inland Clearance Depots (ICDs) at key border points like Timure (Rasuwa), Lizi (Mustang), and Kimathanka.
Zero-Tariff Policy: China agreed to continue its zero-tariff policy for certain Nepalese goods even after Nepal graduates from the Least Developed Country (LDC) status.
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A History of the Route and Operational Safety
The Kathmandu–Lhasa bus service has a long history, first launching in May 2005 before facing closures due to various factors, including the 2015 earthquake and more recent pandemic-related border restrictions. The route typically covers approximately 900 kilometers and takes travelers through breathtaking high-altitude terrain.
To ensure a more sustainable operation this time, officials have focused on safety and modern amenities. Plans include:
Designated Terminals: Establishing modern bus terminals at both ends of the route to handle passenger logistics and luggage.
Standardized Schedules: Implementing regulated departure times to ensure predictability for travelers.
Safety Protocols: Given the high-altitude nature of the journey (exceeding 4,000 meters in several sections), technical teams are coordinating on vehicle safety standards and emergency medical protocols for passengers.
Future Outlook: Regional Connectivity and 2027 Goals
The agreement marks a major milestone in the implementation of the Nepal-China Border Transport Agreement. Beyond just the bus service, both countries are eyeing long-term goals such as the Nepal-China Cross-border Railway and improved cross-border power transmission lines.
The two nations have already scheduled the fourth Commerce Secretary-level meeting to be held in Nepal in 2027. This upcoming summit will serve as a review period to assess the success of the bus service and finalize further collaborative projects in agriculture, traditional medicine, and high-tech parks.
Conclusion
In conclusion, the Kathmandu Lhasa Bus Service agreement represents a significant diplomatic and economic victory for both Nepal and China. By reopening this essential transport corridor, both nations are signaling a commitment to shared prosperity and deeper cultural integration. For Nepal, the service is a vital piece of the puzzle in achieving national development priorities and integrating with international trade networks across the Himalayas.
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