Good afternoon,

Today’s news: Globally, Israeli aggression in Gaza and Trump’s tariffs on India. Story of the day: Pakistan faces disastrous floods as India releases water and heavy rains hit nationwide. Locally, SBP boosts reserves with $7.8b buys, PTI boycotts by-polls, and govt unveils NEV policy.

☕ Grab your chaye, let’s go.

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Around The World

Updates from Gaza. Hamas has released a statement that none of the 21 people killed in an Israeli attack on Nasser Hospital were a member of the Palestinian movement, after the Israeli military claimed it had targeted a Hamas surveillance camera and killed 6 fighters in its attack. Hamas challenged the Israeli government’s claim to name the fighters, which has drawn global condemnation for targeting journalists, medics, rescue workers and civilians.

Meanwhile, Israel is using overwhelming force in its push to occupy Gaza City, with tanks and warplanes leveling entire blocks. At least 21 Palestinians have been killed in Israeli attacks across Gaza since dawn, including 4 aid seekers. The Palestinian Authority has condemned what it calls a dangerous escalation by Israeli forces in the occupied West Bank after a raid in Ramallah injured dozens of Palestinians. Live updates here.

Pay up. President Donald Trump has doubled down on his decision to increase tariffs on imports from India to 50%, a move that could endanger relations with one of America’s most important trading partners. This comes just weeks after Trump instituted a new 25% baseline tariff on Indian goods. The high tariffs on India seek to punish the country for importing Russian oil and helping Russia finance its war with Ukraine, Trump has previously said.

On guard. Venezuela’s defence minister says military vessels and drones will be sent to patrol the country’s coastline amid simmering tensions with the US. The Minister of Defence Vladimir Padrino announced a "significant” drone deployment as well as naval patrols along the country’s Caribbean coast. The move comes after Washington last week deployed a squadron of three warships towards Venezuela’s coast in what it said was an operation against Latin American drug cartels.

Story Of The Day - The Flood Emergency

What’s Happening? Punjab is facing an unprecedented flood emergency due to a combination of heavy rains and India’s actions of opening all gates of major dams on rivers in Indian Occupied Jammu and Kashmir, after warning Pakistan of the possibility of downstream flooding. Islamabad received the warning, and subsequently issued an alert for flooding in the Sutlej, Ravi and Chenab rivers, which flow into the country from India.

What we know so far:

• Two headworks at Chenab, one each at Ravi and Sutlej have been placed in ‘exceptionally high flood’ alerts. 

• Over 32,500 people have been evacuated so far across Punjab as relief and rescue operations continue.

• Sialkot has broken a  49-year rain record with 363.5 millimeters of rain recorded.

• Extensive damage to the education sector in Swat district has rendered 128 government schools partially or completely unusable from flooding.

• Around 2,350 displaced people infected with cholera, throat infections, dermatitis, and malaria have been reported from the camps in Bajaur.

The NDMA has issued an alert for heavy rainfall in various districts of Punjab and Azad Jammu and Kashmir with the army requisitioned across Punjab in Lahore, Okara, Faisalabad, Sialkot, Narowal, Kasur, Sargodha and Hafizabad to support district administrations in protecting lives and property. 

Authorities have urged the public to take precautionary measures, avoid rivers, streams, and low-lying areas, and refrain from unnecessary travel while Prime Minister Shehbaz Sharif has directed federal ministers to immediately visit the flood-affected areas and oversee ongoing relief and rescue operations. 

What happens now? Rescue operations across the country are currently underway, with Army personnel evacuating about 300 people stranded in the Kartarpur town of Punjab after the waters of the Ravi River overflowed its banks and flooded the entire area. Rescue teams in flood-prone districts have been placed on high alert, while the 1122 spokesperson Farooq Ahmad, stated that around 987 people have been rescued from potential flood areas with around 436 boats engaged in rescue efforts.

The United Nations released $600,000 in emergency relief funds for Pakistan, the UN secretary-general’s spokesperson confirmed. Pakistan has also received a $6 million grant from China for the reconstruction of properties destroyed by floods in Balochistan.

Pakistan

Shopping spree. A parliamentary panel was informed that the State Bank of Pakistan purchased USD 7.8 billion from the market between June 2024 and May 2025 to strengthen reserves and cushion external shocks, with FX reserves projected to reach $17.5 billion by June 2026 though $20 billion is the comfort level. Officials said the current account deficit is contained at 0–1%, inflation is expected at 5–7%, and GDP growth is forecast at 4–4.7% in FY2026 after 2.7% in FY2025, reflecting gradual, stable recovery without major inflationary or external pressures. 

Hmm, nvm. PTI has reversed its earlier decision and announced a boycott of upcoming by-elections after jailed leader Imran Khan directed the party’s political committee to do so, arguing that contesting would legitimize the government’s “illegal” de-seating of its lawmakers. The decision, confirmed by PTI MNA, also includes quitting parliamentary committees with most PTI members resigning from the Public Accounts Committee and all other NA standing committees. The move has exposed internal divisions with some leaders warning against ceding political space, while analysts note it highlights PTI’s dependence on Khan's authority.

Power-ups. Pakistan has launched its New Energy Vehicle (NEV) Policy 2025–30, aiming to cut emissions, reduce a $16 billion oil import bill, and use surplus electricity. Building on the 2019 EV policy, the new plan targets adoption of two- and three-wheelers, which make up 87% of vehicles, through subsidies of up to Rs. 400,000, while also supporting cars and commercial vehicles. It mandates 3,000 charging stations by 2030, with oil companies converting 10% of outlets, and funds for the transition projected to be Rs. 122 billion. The policy sets goals of 30% NEV sales by 2030 with Islamabad designated a pilot “electric mobility city.”

What Else Is Happening?

📵South Korea has passed a bill banning the use of mobile phones and smart devices during class hours in schools - becoming the latest country to restrict phone use among children and teens.

💻A California couple has sued OpenAI over the death of their teenage son, alleging that ChatGPT encouraged him to take his own life, and that the programme validated his "most harmful and self-destructive thoughts".

📈Alphabet shares jumped over 3% after Bloomberg reported that Apple is in early talks to use Google’s Gemini AI models to power a revamped Siri, potentially launching next year.