Good afternoon,

Today’s news: Globally, Trump announces $1.4 trillion deals with the UAE. Plus, US-Iran nuclear talks. Locally, the current account surplus shrinks sharply in April, the PM calls for agro-sector reforms, and a ceasefire extension with India until May 18.

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Around The World

Data overload. Trump has concluded his Middle East trip after announcing massive trade deals with the UAE. The US and the UAE will partner to build a massive data center complex in Abu Dhabi to advance artificial intelligence capabilities with 5-gigawatts of capacity — enough to power a major city.

The project is expected to expand the footprint of American AI and cloud companies in the Middle East, allowing them to better serve the Global South. Trump also announced that the UAE will invest $1.4 trillion in the US’s AI sector over the next decade.

Common ground. US President Trump said on Thursday that Washington is very close to reaching a nuclear deal with Iran after Tehran “sort of” agreed to its terms. During his Gulf tour, Trump repeatedly warned that Iran must never obtain a nuclear weapon, threatening to strike the country if it fails to reach a nuclear deal. But he has not explicitly ruled out Iran enriching uranium.

Meanwhile, a top adviser to Iran’s supreme leader has said that Iran would commit to never making nuclear weapons, getting rid of its stockpiles of highly enriched uranium which can be weaponized, agree to enrich uranium only to the lower levels needed for civilian use, and allow international inspectors to supervise the process, in exchange for the immediate lifting of all economic sanctions on Iran.

Half-baked. US President Trump claimed yesterday that India has offered to eliminate tariffs on the US as part of a potential trade deal. However, New Delhi swiftly denied the claims, with India’s foreign minister S. Jaishankar saying that talks were ongoing, calling negotiations between New Delhi and Washington complicated and intricate. Trump has imposed a baseline 10% levy on all goods imported into the US, and India faces an additional 26% reciprocal tariff as well.

Pakistan

Some accounting. Pakistan’s current account surplus fell sharply to just $12 million in April 2025, down from $1.2 billion in March and a 96% year-on-year drop compared to April 2024’s $315 million. The sharp decline was largely driven by a surge in the import bill and a month-on-month drop in remittances, despite a year-on-year increase. Analysts attribute the drop to the normalisation of remittance inflows and a widening trade deficit. Exports in April stood at $3.33 billion while imports jumped 15% to $6.14 billion. Remittances reached $3.18 billion, rising over 13% from the previous year, but falling compared to March levels.

Despite the April slowdown, Pakistan’s current account position remains positive overall, with a surplus of $1.88 billion recorded in the first ten months of FY25, compared to a deficit of $1.34 billion during the same period last year. This turnaround is largely attributed to tight economic policies, including high interest rates, import controls, and low economic growth, all of which have helped contain the deficit.

Agri’d. Prime Minister Shehbaz Sharif has called for a long-term policy to modernize Pakistan’s agro-industrial sector, aiming to boost food security and economic resilience. Chairing a high-level meeting, he urged collaboration between provinces and federal bodies to transform agriculture into a growth engine. Key directives included launching a National Agri-Innovation Plan, expanding agri-loans for small farmers, overhauling the seed certification system, and developing a regulatory framework to support tech adoption and climate resilience.

Let’s talk about it. Foreign Minister Ishaq Dar announced in the Senate that Pakistan is seeking a composite dialogue with India to address all outstanding issues, including Kashmir and water disputes. His statement follows the military-to-military extension of the current ceasefire until May 18, a move welcomed by the United States, which urged both sides to maintain the truce and pursue direct talks.

What Else Is Happening?

⚽️ Barcelona win back the La Liga title from rivals Real Madrid with a 2-0 win at neighbours Espanyol. Having already won the Copa del Rey and the Spanish Super Cup, the league title completes a domestic treble for Barcelona.

🧐 Klarna CEO Sebastian Siemiatkowski revealed the fintech giant cut 40% of its workforce due to AI, but now plans to hire human agents after a hit on work quality.