Good afternoon,

Today’s news: Globally, updates from Iran, and a peace agreement in DR Congo. Locally, COAS meets Trump, Pakistani citizens repatriated from Iran, and cabinet approves power debt reform.

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Around The World

Update from Iran. Donald Trump has reportedly approved plans to attack Iran, but has not made a final decision on whether to strike the country. The US president held off from initiating strikes in case Iran agreed to abandon its nuclear programme, but is now considering a US strike on Fordo, Iran’s underground uranium enrichment facility. Live updates here and here.

Iran's Supreme Leader, Ayatollah Ali Khamenei, on Wednesday rejected Trump's demand for unconditional surrender, as the US president said his patience had run out. Meanwhile, Iranian missiles caused serious damage at four sites in central and southern Israel, including at the Soroka hospital, while Israeli forces are reported to have attacked Iran’s Arak heavy water nuclear reactor.

Stay there. The US Federal Reserve has kept its key interest rate unchanged at 4.3%, even as officials' expectations for the economy worsen. The interest rate has been consistent at 4.3% since December. The decision comes despite forecasts from policymakers suggesting they expect slower growth, higher unemployment, and faster inflation than they did just a few months ago.

The Bank of England is also expected to keep interest rates on hold when its policymakers announce their next decision later. The Bank cut the rate to 4.25% in early May, when its Monetary Policy Committee also hinted at more reductions to come.

Peace out. Representatives of Rwanda and the Democratic Republic of Congo have reached a draft agreement that could end decades of conflict. The breakthrough, mediated by the US and Qatar, provides for the "disengagement, disarmament and conditional integration" of armed groups fighting in eastern DR Congo. It also includes provisions for a joint security mechanism to prevent future flare-ups. The peace deal is expected to be formally signed next week.

Pakistan

House of Munir. In a historic first, Pakistan’s Chief of Army Staff Field Marshal Syed Asim Munir met US President Donald Trump at the White House, marking the first official meeting between a serving Pakistani army chief and a sitting US president. The meeting focused on strengthening counterterrorism cooperation and expanding bilateral ties in trade, energy, AI, and emerging technologies.

Trump praised Munir’s leadership and role in averting war with India, while Munir invited Trump to visit Pakistan. The meeting, deemed a milestone by Defence Minister Khawaja Asif, was reportedly secured through unconventional diplomatic channels, reflecting a new phase of Pak-US engagement.

Home sweet home. Over 800 Pakistanis have safely returned from Iran following the temporary closure of Iranian airspace after Israeli airstrikes. The government, in coordination with its embassy in Iran, arranged both air and land evacuation routes to bring citizens, many of them pilgrims and students, safely back home. A special PIA flight organized on government instructions flew 107 Pakistanis from Ashgabat, Turkmenistan, to Islamabad early Wednesday morning.

Meanwhile, hundreds of others crossed into Pakistan by land through the Taftan border in Balochistan. In light of the escalating regional tensions, Pakistan has indefinitely closed the Panjgur border crossing with Iran, though the Taftan border remains open for repatriation and trade.

Watts up? The federal cabinet approved Pakistan’s largest-ever financial restructuring plan to eliminate Rs. 1.275 trillion in circular debt from the power sector over six years without burdening the national budget, including the refinancing of Rs. 683 billion and payments to IPPs. PM Sharif praised the new federal budget, highlighting tax relief for lower-income earners (👀), rejection of the IMF-proposed agriculture taxes, and a Rs. 1,000 billion allocation for development.

What Else Is Happening?

🫠More than 60 of the world's leading climate scientists have warned the Earth could breach the symbolic 1.5 °C warming limit in as little as three years at current levels of carbon dioxide emissions. Here’s what it means.

💰OpenAI boss Sam Altman has alleged that his team members have been getting "giant offers" from rival tech firm Meta, including $100m "signing bonuses." Meta is attempting to boost its AI business, including recently spending $14bn to buy 49% of the startup, Scale AI.