Governance & Budget Push: Nepal’s FY 2026/27 reform agenda is tied to digitisation and faster delivery, with the government also restructuring ministries into 18 and assigning new high-level roles for cybersecurity, data governance and AI. Power & Infrastructure: The budget targets an extra 1,040 MW next FY and plans multiple transmission line completions; a 400 kV West Seti transmission project is moving ahead via a PPP-backed special purpose company. Electricity Tax Debate: VAT on electricity consumption (5%/13%) is sparking backlash as officials argue it funds grid upgrades while consumers worry about fairness. Industry & Trade: Janakpur Cigarette Factory is struggling to survive amid weak management and competition, while Nepal’s NEPSE reacted negatively to the budget news. Aviation & Tourism: Himalaya Airlines will start direct Kathmandu–Shenzhen flights from June 4, aiming to boost inbound tourism during a typically lean season. Climate-Resilient Agriculture: ICIMOD and partners announced winners of a Hindu Kush Himalaya innovation challenge, and the National Nature Conservation Fund signed deals to promote climate-resilient food crops. Digital Payments: India’s UPI hit record May volumes and value, reflecting stronger consumer spending—relevant for Nepal’s fintech ecosystem too. Health & Business Growth: NephroPlus expects 15–20% revenue CAGR over the next three years, citing rising dialysis demand and digital scale-up. Culture & Film: KIMFF wrapped up with major documentary and fiction awards, highlighting Nepal’s growing mountain film industry.