Budget & Business Climate: Finance Minister Swarnim Wagle says Nepal’s FY 2026/27 budget is built on a five-year horizon to lay a long-term foundation, with revenue targets and a push to mobilize domestic resources. Private sector groups welcomed the “right direction” but want more complete measures to improve investment, production and jobs. Public Finance Priorities: The government has cut funding for “national pride” infrastructure, including a zero allocation for railway/metro plans, while also earmarking higher pay for civil servants. Tax & Cost Pressures: A new “green tax” on smartphones and smartwatches is set to raise prices further, adding to already rising electronics costs. Energy & Infrastructure: A 400 kV West Seti transmission line is moving ahead under a PPP model, while the power sector faces subsidy pressure due to higher purchase and import costs. Governance & Accountability: Nepal’s planning leadership urged an end to rent-seeking in the private sector; meanwhile, parliament sessions have been disrupted by controversies, and the PM responded to MPs on governance issues. SME & Agriculture Support: FNCCI highlights SME promotion as key for an economic revolution, and the budget unveils incentives to boost agricultural productivity, including grants for commercial farmers. Aviation & Trade Link: Himalaya Airlines will start direct Kathmandu–Shenzhen flights from June 4, aiming to boost tourism and trade. Digital Economy: India’s UPI hit record May numbers, a reminder of the region’s fast-moving payments shift. Legal/Corporate Watch: A court ordered release of a detained banking CEO, while separate reports flag alleged e-passport procurement variations defrauding the state.