The town had about 7000 inhabitants and a power plant in 1990, but the dry-up of transport routes and the closure of a local wool factory have led to high migration rates, leaving only 3,756 inhabitants in 1994 and 2,498 inhabitants in the 2000 census. The latest official population estimate is 2,796 (December 31, 2006 [https://web.archive.org/web/20080528115803/http://www.rprpmongolia.mn/pdf/2007semi_annual_report_eng.pdf]). Khatgal also lost its status as a town and is now administratively part of Alag-Erdene Sum. In 2007, Khatgal was connected to the Mongolian central power grid and to cell phone services.