Budget & Industry Policy: Finance Minister Dr. Swarnim Wagle tabled Nepal’s FY 2083/84 budget of Rs 2.124 trillion, targeting 7% growth with inflation capped at 6%, while debates continue over the budget’s size, capital spending share, and implementation capacity. LDC Graduation: Nepal has asked the UN to defer its Least Developed Country graduation from Nov 2026 to Nov 2029, citing regional conflicts, supply-chain disruptions, remittance pressure, and weak growth forecasts. Hydropower & Power Sector: The 216 MW Upper Trishuli-1 (UT-1) hydropower project moved into its final pre-generation stage after installing the first weir gate, aiming to boost power supply for Kathmandu and beyond. Agriculture & Value Chains: Nepal’s budget signals stronger agriculture incentives, including grants for investors in agriculture and livestock, higher fertilizer allocation, and steps to systematize farmer support. Energy Costs Hit Manufacturing: Major development projects and manufacturing are under strain as West Asia conflict and global oil price volatility raise fuel and polymer costs, pushing up expenses and supply risks. Tourism & Connectivity: Nepal welcomed 102,626 international visitors in May (+19% YoY), while Himalaya Airlines prepares direct Kathmandu–Shenzhen flights from June 4 to strengthen business and tourism links. Trade & Logistics: A border dispute over the Lipulekh pilgrimage route resurfaced, with Nepal protesting and India leaving room for dialogue. Market Watch: NEPSE rose 22.21 points to close at 2,777.58, with finance and hydropower stocks leading. Agribusiness Spotlight: Organic vegetable farming in Dang is boosting incomes, supported by agriculture value-chain programs. Startup & Expo Links: India hosted a second batch of Nepali startups, and Nepal participated in the UN International Bazaar 2026 showcasing crafts and heritage.