Good afternoon,

Today’s news: Globally, updates from Gaza, Ukraine and Japan. Locally, SBP expected to hold rates at 11%, corn shortage threatens hike in chicken prices, and Chenab floods force mass evacuations in Multan.

☕ Grab your chaye, let’s go.

P.S. First time reading? Subscribe here for free.

Around The World

Updates from Gaza. US President Donald Trump said his administration is working on a solution that could be good for Gaza, hours after issuing what he called a final warning to Hamas. Earlier on Sunday, Trump put forward a new proposal to end the war in Gaza, saying that Israel had accepted his terms and that he informed Hamas about the consequences of turning down the offer. 

Meanwhile, Israel’s Supreme Court has said in a rare ruling that the Israeli government is intentionally depriving thousands of Palestinian prisoners of food amid the genocidal war on Gaza. The panel, which has so far mostly refrained from taking any action against the government or military during the war, deliberated on the issue based on a request from two Israeli rights groups.

Additionally, Israeli attacks across Gaza since dawn killed at least 21 people and destroyed another high-rise in Gaza City. Israeli forces continue to raid towns across the occupied West Bank, arresting Palestinians and destroying land and property.

Weekend update. Russia has hit Ukraine with the largest air attack since the war began, killing at least four people across the country and setting dozens of buildings on fire in the capital. Russian forces launched 810 drones and 13 missiles in the overnight attack on Sunday. Trump threatened tougher sanctions against Russia after the heavy aerial bombardment last night.  The attack has led to growing calls for stronger Western action against President Putin. Trump has previously threatened harsher measures against Russia, but has not taken any action when Putin ignored his deadlines and threats of sanctions. 

Sayonara! Japan's Prime Minister Shigeru Ishiba has announced he is stepping down after less than a year in the role, following two major election losses. The move comes a day before his Liberal Democratic Party (LDP) was expected to vote on whether to hold an internal leadership vote that could have forced him out. The LDP has governed Japan for most of the past seven decades, but under Ishiba, it lost its majority in the lower house for the first time in 15 years and then lost its majority in the upper house in July.

Pakistan

Locked in. The central bank is likely to keep its key interest rate unchanged at 11% as the monetary policy committee meets on Sep 15. The State Bank has already reduced rates from a record 22% in June 2024 to 11% by May 2025 but has since paused amid inflation and flood-related risks. 

Analysts warn ongoing floods could fuel food inflation, though market signals such as stable KIBOR (a key interbank lending rate) and government security yields suggest no imminent change. Topline projects inflation averaging 6–7% in FY2026, with gradual rate cuts bringing the policy rate near 10% by mid-2026, in line with IMF-backed monetary prudence.

Chickenomics. Corn prices in Punjab have surged nearly 64% from Rs. 2,200 to Rs. 3,600 per maund since the harvest season, with shortages pushing poultry feed mills into crisis and threatening further hikes in chicken meat prices, already between Rs. 630–1,050 in Karachi. Industry stakeholders blame a 30% regulatory duty on imports and flood-driven supply disruptions, with stockists selling at inflated rates. 

Experts warn prices could hit Rs. 3,800 per maund, urging the government to immediately allow at least 300,000 metric tonnes of duty-free corn imports to stabilize feed costs. While soybean meal prices have eased, they account for only 14–15% of poultry feed, compared to corn’s 60%, making swift action critical for farmers, feed mills, and consumers.

Rising risks. An extremely high flood threatened to submerge Jalalpur Pirwala in Multan district, forcing evacuations as rising waters of the Chenab River bombarded low-lying areas and drowned at least seven people during evacuations. Authorities reported over 350,000 people and 300,000 animals evacuated, with more than 9,000 rescued in Multan alone, while downstream cities were also urged to evacuate. 

River flows across Punjab remained dangerously high, with Punjnad Headworks recording over 609,000 cusecs, as the Met office warned of heavy to “exceptionally very heavy” rains across Sindh, Punjab, KP, and Balochistan till September 10, heightening risks of urban flooding, flash floods, and landslides. 

What Else Is Happening?

🎾Carlos Alcaraz beat rival Jannik Sinner at the U.S. Open for a 6th Slam title and the No. 1 ranking, replacing Sinner atop the men’s world rankings. It’s his second win over Sinner in a grand slam final this year and his second major win of the season.

🛳️The Global Sumud Flotilla arrived in Tunisia on Sunday, the last stop on its journey before continuing to Gaza. The flotilla is trying to break the Israeli blockade on the Palestinian enclave, where a famine has been declared.

🧑‍⚖️AI firm Anthropic has agreed to pay $1.5bn to settle a class action lawsuit filed by authors who said the company stole their work to train its AI models. The deal would be the largest publicly-reported copyright recovery in history.