Nepal-China Agree to Relaunch Kathmandu-Lhasa Direct Bus Service After Two Decades

Kathmandu. Discussions are intensifying regarding the relaunch of the direct Kathmandu-Lhasa bus service, which was initiated two decades ago with the aim of promoting tourism and trade between the two countries. An agreement to revive this service was reached during the recent Nepal-China Commerce Secretary-level meeting held in China.

The agreement to operate the Kathmandu-Lhasa bus service was reached between the two countries during the third Commerce Secretary-level meeting of the Nepal-China Coordination Mechanism on Border Trade and Cooperation, held in China on Magh 6 and 7 (January 20 and 21, 2026 BS).

Bilateral trade, customs facilitation, infrastructure development, and other cooperation issues were agreed upon during the meeting held in Lhasa, the capital of China's Tibet Autonomous Region. The Nepali delegation was led by Dr. Ram Prasad Ghimire, Commerce Secretary of the Ministry of Industry, Commerce and Supplies, while the Chinese side was led by His Excellency Chao Peng, Vice Chairman of the Tibet People's Government.

The direct bus service between Nepal and China formally commenced on Baisakh 16, 2062 BS, after an 11-year wait following the signing of the transport agreement. Although this direct bus service was expected to add a new dimension to the relationship between the two countries, it could not operate for more than 10 months. Since then, attempts to resume the service were made in 2066 BS and 2073 BS, but these efforts remained confined to paper. The Ministry of Physical Infrastructure and Transport has now indicated preparations for its relaunch.

Sushil Babu Dhakal, Joint Secretary and Chief of the Development Assistance Coordination and Quality Division at the Ministry, states that the ministry has a clear and positive stance on the operation of the Kathmandu-Lhasa bus service.

'The ministry is ready to operate this bus. There should be smooth movement between the two countries after fulfilling all standards, including security,' he says, 'The Kathmandu-Lhasa bus service is not just a means of transport; it appears to be sustainable and fruitful for connectivity, tourism, and trade between Nepal and China.'

What is the Department's preparation?

While an agreement has been reached in the recent Commerce Secretary-level meeting, the Department of Transport Management (DoTM) stated that it is awaiting official directives.

Rajiv Pokhrel, Director General of the DoTM, said that they are ready to approve route permits for service providers to operate the Kathmandu-Lhasa bus. 'Once the government gives official direction, we are ready to issue route permits from here. First, who will operate the bus service? They need to come,' he says.

The Kathmandu-Lhasa bus formally commenced operation from Baisakh 2062 BS after an 11-year wait following the agreement, but it was shut down within 10 months. Director General Pokhrel of the DoTM states that technical, geo-political, policy, and practical reasons were primarily responsible for the suspension of this bus service.

According to Shrikanta Yadav, a Director at the Department, some private service providers had already submitted proposals to the department for bus operation six months ago. 'We positively considered the service providers' proposals six months ago and made recommendations. Now we hear that an agreement has been reached at the Commerce Secretary level. As soon as the official directive arrives, we are ready to issue route permits and allow Chinese buses to enter Nepal,' he says.

Previously, preparations were made to resume the service in Kartik 2066 BS, targeting Nepal Tourism Year 2011. At that time, Sonping Wang, Executive Director of the Tibet Tourism Administration, had stated that the bus would start operating from February 2010. Similarly, in Ashadh 2073 BS, the then Director General of the Department of Tourism, Sudarshan Dhakal, had informed that an agreement was reached to operate the bus with a new modality. However, those plans were not implemented as an appropriate 'modality' could not be finalized.

Why was the bus service stopped?

The Kathmandu-Lhasa bus formally commenced operation from Baisakh 2062 BS after an 11-year wait following the agreement, but it was shut down within 10 months. Director General Pokhrel of the DoTM states that technical, geo-political, policy, and practical reasons were primarily responsible for the suspension of this bus service. According to him, there are no complications in operating the Delhi-Kathmandu bus service due to the open border with India. A passport and visa are not required to travel to India. The bus service is currently operating smoothly. However, a passport and visa are mandatory for travel to China. In the past, there was a problem where the visa process took time after purchasing a bus ticket, and visa assurance was not guaranteed.

During the Beijing Olympics held in China in 2008, the bus service was tightened citing security reasons. When preparations were underway to resume the service around 2066 BS, then Chinese officials also stated that the service was halted due to the security sensitivity of the Olympics and Tibet.

'The situation where passengers had to cancel their journey due to not receiving visas on time caused problems for the service providers,' Pokhrel says, 'This is also why this bus operation was stopped.'

Director General Pokhrel also pointed out geographical difficulties and health problems of passengers as another reason. Pokhrel says, 'The main problem was altitude sickness. When the bus traveled from Kathmandu, many passengers fell ill upon suddenly reaching the high-altitude region of Lhasa. Due to health risks, passenger attraction did not increase as expected.'

Furthermore, this route turned out to be 'seasonal' in nature. While passengers were willing to see the Himalayas and visit Lhasa during the summer, a situation arose where passengers were unavailable during the winter due to extreme cold. Pokhrel explains that service provider companies faced financial burdens due to the lack of regular passengers throughout the year, leading to the shutdown.

During the Beijing Olympics held in China in 2008, the bus service was tightened citing security reasons. When preparations were underway to resume the service around 2066 BS, then Chinese officials also stated that the service was halted due to the security sensitivity of the Olympics and Tibet.