Good afternoon,

Today’s news: Globally, the US tries to resuscitate nuclear talks with Iran, and India shows discontent with the SCO. Locally, NA passes Rs. 17.57 trillion budget, PSX surges, and Swat reels from deadly flash floods.

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Around The World

The new normal. The Trump administration has discussed possibly helping Iran access as much as $30 billion to build a civilian-energy-producing nuclear program, easing sanctions, and freeing up billions of dollars in restricted Iranian funds, in an attempt to bring Tehran back to the negotiating table.

Sources report that key players from the US and the Middle East have also talked with the Iranians behind the scenes, even amid the flurry of military strikes over the past two weeks. Those discussions have continued this week after a ceasefire deal was struck.

Meanwhile, Iran’s Supreme Leader Ayatollah Ali Khamenei said Thursday that his country had delivered a “slap to America’s face” by striking a U.S. air base in Qatar and warned against further attacks in his first public comments since a ceasefire agreement with Israel.

My way. India has refused to sign a joint statement at the Shanghai Cooperation Organization summit in China as it did not reflect the country's concerns on terrorism. Indian Defense Minister Rajnath Singh said the statement diluted India’s position on critical issues such as terrorism and regional security.

Indian media also reported that Delhi refused to sign the statement after it omitted the Pahalgam attack, a deadly militant attack that killed 26 tourists in Indian-administered Kashmir. India has blamed Pakistan for sheltering a militant group it blames for the attack. Pakistan has rejected the allegations.

Making a mark. Canada's parliament has passed a landmark bill giving the government new powers to fast-track major economy-boosting national projects by bypassing certain provisions of federal laws. Supporters of the bill argue that the legislation is a critical step in reducing Canada's dependence on the United States, amid trade tensions sparked by Trump's tariffs and his threats to annex Canada.

Pakistan

Bulky budget. The National Assembly has passed Pakistan’s Rs. 17.57 trillion federal budget for FY 2025-26, despite opposition protests demanding public consultation and transparency. The budget includes a 4.2% growth target, 7.5% inflation rate, and Rs11.07 trillion in net revenue receipts, with key allocations for defense (Rs2.55tr), pensions (Rs1.06tr), subsidies (Rs1.19tr), and Rs716bn for the Benazir Income Support Programme (BISP), which saw a 20% increase. 

The PPP supported the budget due to tax relief for salaried classes, reduced solar panel taxes, and curtailed FBR arrest powers, while the PTI and others criticized it for increasing public debt, lacking reforms, and expanding FBR authority. The Public Sector Development Programme, aligned with URAAN Pakistan goals, earmarks Rs1tr for development, focusing on transport, dams, and education, including Rs 39.5bn for the Higher Education Commission and Rs4bn for agriculture schemes.

Dip flip. The Pakistan Stock Exchange (PSX) saw a strong rebound on Friday, with the KSE-100 Index gaining over 3,100 points as investor sentiment improved following the National Assembly’s passage of the Rs. 17.57 trillion Finance Bill 2025. Key sectors, including banks, oil and gas, cement, and automotive, led the rally, reversing Thursday’s 715-point drop driven by selling pressure. Globally, Asian markets surged to multi-year highs, tracking Wall Street gains amid easing geopolitical tensions and expectations of U.S. interest rate cuts. 

Flash floods. 7 bodies have been recovered and at least 16 are missing after flash floods, triggered by heavy rains, swept through the Swat River in Pakistan’s Khyber Pakhtunkhwa province. A 120-person rescue operation is ongoing, while the National Disaster Management Authority has issued warnings of more heavy rains and flooding until June 28. The disaster highlights Pakistan’s vulnerability to extreme weather, as the country braces for another intense monsoon season following the devastating 2022 floods that killed over 1,700 people and caused $30 billion in damages.

What Else Is Happening?

🧬 Work has begun on a controversial project to create the building blocks of human life from scratch, in what is believed to be a world first. The research has been taboo until now because of concerns it could lead to designer babies or unforeseen changes for future generations.

🎬 Punjabi film Sardaar Ji 3, starring Indian singer and actor Diljit Dosanjh and Pakistani actress Hania Aamir, has been approved by Pakistan’s Sindh, Punjab, and federal censor boards and is set to screen in select cinemas across the country today, despite the ongoing official ban on Indian films.