Good afternoon,

Today’s news: Globally, the US proposes a ceasefire in Gaza, the Dalai Lama announces succession, and Trump’s big spending bill passes the Senate. Locally, Pakistan and India exchange prisoner lists, the trade deficit widens to $26.3bn, and a deadly blast in Bajaur kills five officials.

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Around The World

Ceasefire? President Donald Trump said Tuesday that Israel had agreed to the necessary conditions to finalize a ceasefire in Gaza. Israel has not confirmed it has agreed to the conditions of a deal, and there was no immediate comment from Hamas. Around 50 Israeli hostages are still in Gaza, at least 20 of whom are believed to be alive.

Israeli forces have killed at least 109 Palestinians across Gaza as they target displaced people sheltering in tents, including 16 aid seekers at the US and Israeli-backed Gaza Humanitarian Foundation (GHF) sites.

Big, beautiful. The US Senate narrowly passed Trump’s massive tax and spending bill on Tuesday, following intense negotiations and a marathon voting session on amendments. The bill still faces a challenging path to final approval in the House of Representatives and would impose deep cuts to health and nutrition programmes, while offering $4.5 trillion in tax reductions. Here’s what’s in the bill.

Meanwhile, the USD has had its worst first six months of the year since 1973, as Trump’s economic policies have prompted global investors to sell their greenback holdings. The dollar index also fell 10.8 percent in the first half of 2025.

New Holiness. The Dalai Lama has announced that he will have a successor after his death, continuing a centuries-old tradition paramount to the struggle with China’s Communist Party over Tibet’s future. He said only the Gaden Phodrang Trust, which he founded, had the authority to recognize his future reincarnation.

China, which annexed Tibet in the 1950s, responded by saying the Dalai Lama's successor must be "approved by the central government." China regards the Dalai Lama as a separatist and says he has no right to represent the Tibetan people.

Pakistan

Both sides. Pakistan and India exchanged lists of prisoners on Wednesday under the 2008 Agreement on Consular Access, with Pakistan sharing details of 246 Indian or believed-to-be Indian prisoners (53 civilians, 193 fishermen) and India providing information on 463 Pakistani or believed-to-be Pakistani prisoners (382 civilians, 81 fishermen). Pakistan called for the immediate release of confirmed Pakistani prisoners and urged India to ensure their safety and well-being. Most of the arrests stemmed from fishermen inadvertently crossing maritime borders due to a lack of clear demarcation and navigation tools.

Trade & tumble. Pakistan’s trade deficit grew 9% to $26.3 billion in FY 2024-25 as imports rose more than exports. Imports hit $58.4 billion (up 6.6%), while exports reached $32.1 billion (up 4.7%). In June 2025, the monthly deficit dropped 3.4% year-on-year to $2.3 billion, thanks to lower imports. It also fell 9.5% from May. Experts say long-term export growth depends on political stability, energy reforms, and better global competitiveness.

From KP. At least five people, including Nawagai Assistant Commissioner Faisal Ismail, were martyred and 11 others injured in a bomb blast in Bajaur’s Khar tehsil. The explosion targeted a government vehicle on Nawagai Road in the Siddiqabad area and completely destroyed it. An emergency was declared in hospitals, with KP’s health adviser assuring full medical support for the injured. The provincial government condemned the attack, with the chief minister ordering an inquiry.

What Else Is Happening?

🎤The wait is over, K-pop fans - BTS are back. The band confirmed their highly anticipated comeback on Tuesday, scheduling a new album and tour for 2026.

🧪OpenAI-backed Chai Discovery announced Chai-2, an AI capable of creating functional antibodies for drug development, nearing a 20% hit rate that marks a 100x improvement over methods that typically achieve less than 0.1%.