Good afternoon,

Today’s news: Globally, Trump heads to Syria and Qatar, and updates from Gaza. Locally, Pakistan receives $1.02 billion from the IMF as talks begin on the 2025–26 budget, a rare prisoner swap with India amid ceasefire and the economic cost of war.

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Around The World

Quick stop. President Donald Trump met Wednesday with Syrian President Ahmad al-Sharaa, going face-to-face with the onetime insurgent leader who spent years imprisoned by U.S. forces after being captured in Iraq. The president also pledged to lift years-long sanctions on Syria, which go back to the rule of Bashar Assad and were intended to inflict major pain on his economy.

Trump then headed to a meeting in Riyadh with members of the Gulf Cooperation Council, made up of Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the United Arab Emirates, before setting off for Qatar, the second stop in his Mideast tour.

Here’s a great explainer of what Trump is seeking from the Gulf countries and why these nations are so important to him.

Update from Gaza. Israeli forces have intensified their attacks on Gaza, killing at least 65 Palestinians since midnight, including 45 people who were killed in north Gaza. Israel also targeted Hamas leader Mohammed Sinwar in a strike on a hospital in southern Gaza on Tuesday evening, according to a senior Israeli official. Sinwar became the militant group’s de facto leader after the Israeli military killed his brother, Yahya Sinwar, last October.

Meanwhile, Russia, China, and the UK have rejected a US-Israeli plan for distributing aid in Gaza, instead urging Israel to lift its two-month blockade on Gaza. In Riyadh, Trump also addressed the war in Gaza, saying he shares the hope of so many in this region for a future of safety and dignity for the Palestinian people. He took a shot at Gaza’s leaders, saying their attacks against innocent people are blocking progress. He said he greatly appreciates GCC leaders’ constructive role in trying to end this terrible conflict.

Pakistan

Cha-ching. The State Bank of Pakistan has received $1.02 billion (SDR 760 million) from the IMF under the Extended Fund Facility (EFF), following the Fund’s approval after its first review of Pakistan’s economic reforms. This brings total EFF disbursements to $2.1 billion. The IMF also approved a separate $1.4 billion Resilience and Sustainability Facility (RSF) to help Pakistan tackle climate-related challenges. The full EFF agreement totals around $7 billion, with analysts viewing it as key to stabilizing reserves and guiding reforms.

Meanwhile, Pakistan and the IMF begin formal talks today to discuss the 2025–26 federal budget. Talks will run through May 23 and focus on revenue targets, spending plans, tax reforms, and energy sector and SOE restructuring. Finance Minister Aurangzeb confirmed the budget will be finalized within a month. The government is expected to push for easing the tax burden on the salaried class during negotiations.

Peace and price. Pakistan and India have exchanged detained security officials at the Wagah-Attari border, marking a rare gesture of cooperation between the two countries. According to PTV News, Muhammadullah, a member of the Pakistan Rangers, was handed back to Pakistani authorities. In return, India received Constable Purnam Kumar Shaw of the Border Security Force (BSF), who had been held by Pakistan Rangers since April 23 after inadvertently crossing into Kasur district.

The four-day military standoff between Pakistan and India cost both nations a staggering $1 billion per hour combined, totaling $20 billion a day, according to economist Farrukh Saleem. He estimates India bore up to 80–85% of the cost, given its larger and more expensive military mobilization. Saleem warned that a 30-day war could cost both economies $500 billion, with India losing over $400 billion alone.

What Else Is Happening?

👋Microsoft laid off about 6,000 workers Tuesday, nearly 3% of its workforce, and its largest job cuts in over two years as the company spends heavily on AI.

🧑‍💻The UAE has announced AI classes as part of its state school curricula from primary onwards, vowing not to repeat the error of its slow adaptation to social media.

Today In History

Today in 1948, the independent state of Israel was proclaimed in Tel Aviv by David Ben-Gurion, who became its first prime minister.