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Today’s news: Globally, updates from Israel, Ukraine, Germany, and Bangladesh. Locally, India cuts Chenab River water flows, SBP slashes policy rate to 11%, PM announces power distribution companies to be handed over to provinces.

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Around The World

War on terror. Israel has attacked Yemen, Lebanon, Syria, and Gaza in one day, where air raids killed at least 54 people on Monday. Meanwhile, Israeli Prime Minister Benjamin Netanyahu has said Gaza’s more than 2 million people “will be moved” in a new ground offensive as Israel’s total blockade on the enclave reaches 65 days. Israel says its objective is the return of hostages still held by Hamas and its dismantling and decisive defeat.

A senior Hamas official said there is no point in further talks on a new Gaza ceasefire and hostage release deal and that they would not engage with new proposals while Israel continued its "starvation war".

Grounding. Ukrainian drones attacked Moscow for the second consecutive night, halting flights in the Russian capital as it prepares to host a major military parade expected to be attended by world leaders, including China’s Xi Jinping. Meanwhile, Russian retaliatory drone strikes on the Ukrainian cities of Sumy and Odesa have killed four people. The attacks came before a three-day ceasefire, unilaterally announced by Russia last month, to coincide with its Victory Day parade on Friday.

Try, try again. German conservative leader Friedrich Merz’s bid to become Germany’s 10th chancellor has failed in the first round of voting by six votes. Merz was expected to win the vote with a majority of 316 out of 630 votes. He only received 310 votes. If Merz or other candidates fail to get that majority within 14 days, the constitution allows for the president to appoint the candidate who wins the most votes as chancellor, or to dissolve the lower house of Parliament and hold a new national election.

Men-tal gymnastics. More than 20,000 supporters of an Islamist group rallied in Bangladesh’s capital on Saturday to denounce proposed recommendations for ensuring equal rights, including ones related to property, for mainly Muslim women. Leaders of the Hefazat-e-Islam group said the proposed legal reforms are contradictory to Sharia law. The group threatened to organize rallies on May 23 across the country if the government didn’t meet their demands.

Pakistan

Acting fishy. India has sharply cut water flows from the Chenab River into Pakistan, dropping discharges at Marala headworks by over 91%, from 35,600 cusecs on Sunday to just 3,100 on Monday, without prior notice. This comes as India fills three large reservoirs in the Chenab basin, with a combined storage capacity exceeding 1.2 million acre-feet. Pakistani officials condemned the action as a “grave violation” of the Indus Waters Treaty, warning it threatens irrigation in Punjab, where canals are vital to farming.

The Indus River System Authority (Irsa) has already flagged a 21% water shortfall for early Kharif crops and warned the deficit could worsen if flows remain low. Officials also cautioned that any sudden release of stored water by India could trigger flood-like conditions downstream in Pakistan. Sindh, meanwhile, objected to Punjab's use of the Chashma-Jhelum Link Canal, saying it affects its share. Punjab responded that it was using its allocated portion and assured Sindh its 76,000 cusecs share was being released and would arrive within days.

SBO cuts policy rate. The State Bank of Pakistan (SBP) reduced its key policy rate by 100 basis points to 11%, the lowest level since March 2022. The decision by the Monetary Policy Committee (MPC) exceeded market expectations, with analysts largely anticipating either a smaller cut or no change at all. This marks a cumulative reduction of 1,100bps since June 2023, when the rate peaked at an all-time high of 22%. The MPC cited a significant drop in headline inflation, just 0.3% year-on-year in April, as a major reason for the rate cut. The SBP now expects inflation to gradually rise but remain within the 5–7% target range, though it warned of risks tied to volatile food and energy prices, global commodity trends, and geopolitical uncertainties.

Provincial disco. Prime Minister Shehbaz Sharif announced that power distribution companies (Discos) will be handed over to provinces within two months as part of efforts to curb massive annual losses and reform the energy sector. Speaking during a meeting with a PPP delegation led by Bilawal Bhutto-Zardari, the PM said consultations are underway for the upcoming federal budget, expected in early June. The delegation shared its budget proposals and backed the government's reform agenda.

What Else Is Happening?

💲After months of pursuing a plan to convert itself into a for-profit business, OpenAI is reversing course and says its nonprofit will continue to control the company that makes ChatGPT and other artificial intelligence products.

🌟The origin of heavy elements like gold has been one of the biggest mysteries of astrophysics. Scientists have now found that explosions in highly magnetised neutron stars, called magnetars, could have created gold in the universe.