Good afternoon,

Today’s news: Globally, nuclear sanctions on Iran, Russia’s attack on Kyiv, and India-Canada restore diplomatic relations. Locally, Wheat shortfall sparks price hike, record floods devastate Punjab, and the government drafts a new textile policy.

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Around The World

Back at it. France, Germany, and the United Kingdom have begun the process to reimpose UN sanctions on Iran over its nuclear program. This comes as diplomatic efforts to restrain Iran’s growing nuclear program have faltered. The snapback mechanism would reimpose all UN sanctions that had been previously lifted in the 2015 Iran nuclear deal.

Tehran condemned the move and warned there could be consequences for reimplementing sanctions. Iran has spent decades developing its nuclear program, which it maintains is solely for peaceful energy purposes. The country has said it plans to build additional nuclear power plants to meet domestic energy needs and free up more oil for export.

Russian roulette. Russia launched a major air attack on Kyiv, killing at least 21 people, wounding 48, and damaging the European Union diplomatic and the British Council offices. Ukraine’s air force said that the Kremlin unleashed 629 air attack weapons on the country overnight, comprising 598 drones and 31 missiles.

Britain said the attack on the EU offices sabotaged peace efforts. The UN Security Council also scheduled an emergency meeting on the airstrikes at the request of Ukraine and the five European Council members (Britain, France, Slovenia, Denmark, and Greece). 

Patch up. India and Canada have appointed new high commissioners to each other's countries, in the latest step to restore ties strained by the killing of a Sikh separatist leader in Vancouver in 2023. India's previous high commissioner left Canada last October after Ottawa expelled him, linking six diplomats to the murder of Hardeep Singh Nijjar - though Delhi insisted he was withdrawn.

Pakistan

Wheat a minute. Pakistan is facing a potential wheat flour crisis as national stocks stand at 33.47 million tons, slightly below the annual consumption requirement of 33.58 million tons, triggering a surge in flour prices from Rs. 1,060–1,100 to Rs. 1,340–1,450 per 15kg bag. Federal Food Security Minister Tanveer Hussain reassured that the 0.11 million-ton shortfall is negligible and does not threaten food security, ruling out imports this year to prioritize local farmers.

Relief efforts continue. Record monsoon floods have devastated Punjab, where 20 people died this week and over 435,000 residents were evacuated, with 1,769 villages inundated and 1.45 million people affected nationwide as the death toll since June has surpassed 820. Officials say torrential rains and excess water from Indian dams have triggered the worst flooding since 1988, with the Ravi, Sutlej, and Chenab rivers in high flood for the first time in four decades. 

Rescue efforts include relief camps, medical units, and compensation for victims, with over 300,000 animals evacuated. With surges now moving downstream, Sindh has been placed on high alert.

Worn-out. Pakistan is drafting a five-year Textiles and Apparel Policy alongside a National Industrial Policy to boost competitiveness, remove trade barriers, and drive long-term export growth. The textile sector has lagged behind regional peers like Bangladesh due to high energy costs and outdated infrastructure, despite being Pakistan’s top export earner, contributing 8.5% of GDP and employing 40% of industrial labor. 

Officials pledged stakeholder-driven policies with a focus on replicating Bangladesh’s success, while the broader industrial policy will address energy, tariffs, financing, and investor facilitation. However, industry groups urged the removal of structural inefficiencies and warned that recent amendments to the Export Facilitation Scheme were already disrupting supply chains.

What Else Is Happening?

💰Computer-chip designer Nvidia reported $46.7bn revenue for the second quarter this year, a 56% surge from the same period in 2024. Nvidia has been boosted by tech firms keen to expand their AI capabilities, despite ongoing US-China tensions.

🚭Singaporean authorities have announced tougher penalties for vaping as they try to crack down on the increasing use of drug-laced vapes in the country. The penalties include stiffer fines, jail terms, canings, and even deportation for foreigners.