Good afternoon,

Today’s news: Globally, updates from Gaza, China and the US seek trade deals, and a drug operation in Europe. Locally, Pakistan reports a record $1.2 Bn current account surplus, a storm in northern Pakistan takes five lives, and Karachi braces for a heatwave.

☕ Grab your chaye, let’s go.

P.S. First time reading? Subscribe here for free.

Around The World

Art of the deal. On Wednesday, President Donald Trump directly joined the trade talks with Japanese officials, a sign of the high stakes for the US as it scrambles to assure the public that it would quickly reach deals. On Thursday, Trump is scheduled to meet with Italian Prime Minister Giorgia Meloni, who will likely be carrying messages on behalf of the European Union about how to resolve the tariffs Trump placed on the 27-state group. 

Meanwhile, China is pursuing its own set of agreements. Xi has promised Malaysia and Vietnam greater access to Chinese markets on his visits, although few details were shared. He arrived in Cambodia today as the country faces the threat of a 49% tax on exports to the U.S. once his 90-day pause expires. Cambodia’s rapid growth in recent decades has been fueled largely by Beijing, and both parties seem very willing to propagate their trade relations.

Updates from Gaza. Israeli strikes on the Gaza Strip overnight into Thursday killed at least 35 people, including a family of 10. The United Nations has said that an estimated 500,000 people have been “newly displaced or uprooted once more” in Gaza since Israel broke the ceasefire with Hamas on March 18.

The United Nations also raised an alarm over the mounting impact of Israel’s six-week-old blockade preventing all food and other supplies from entering the territory. Israel’s Defence Minister, Israel Katz, said his country’s policy is clear, and preventing all humanitarian aid from entering Gaza is a tool to pressure Hamas. 

High, there. Turkish police detained 525 suspected drug dealers across the capital, Ankara, on Thursday in the biggest narcotics operation in the country’s history. The arrested are suspected of being involved in the sale of narcotics via online social platforms. The raids in Turkey follow a large-scale Europe-wide drug trafficking and money laundering operation on Tuesday. Over 230 people were arrested during the operation led by Europol and police forces in the Netherlands, Turkey, Germany, Spain, and Belgium, and $400 million worth of assets were seized.

Pakistan

Spring miracle! Pakistan reported a record $1.2 billion current account surplus in March 2025, a dramatic improvement from the $12 million deficit recorded in February, according to data released by the State Bank of Pakistan. The surplus has pushed the current account balance for the first nine months of FY25 to $1.86 billion, a sharp reversal from the $1.65 billion deficit in the same period last year. 

The improvement is driven by a 71% surge in remittances ($4.05 billion), moderate export growth (up 5.4% to $3.5 billion), and import controls. Analysts say low economic growth, high inflation, a still-elevated interest rate environment, and import restrictions have contributed to curbing the current account deficit. Finance ministry adviser Khurram Schehzad noted that if this trend continues, helped by low oil prices and sustained remittance inflows, Pakistan could remain in surplus through FY25 and potentially FY26, further enhancing investor confidence.

Climate in chaos. A freak hail and thunderstorm swept through parts of northern Pakistan yesterday, claimed five lives, and caused widespread damage across Punjab, Khyber Pakhtunkhwa (KP), and Islamabad. Triggered by a clash between hot air rising from the plains and cold winds from northern Iran, the storm produced unusually large golf ball-sized hailstones, which shattered car windshields, damaged solar panels, and tore through rooftops, including that of the Faisal Mosque. The Provincial Disaster Management Authority (PDMA) is monitoring the situation, coordinating with local administrations, and has begun efforts to assess the damages and provide compensation.

Hotter and hotter. Karachi is bracing for a heatwave expected to begin this Sunday, with temperatures potentially rising to near 40°C as predicted by meteorologists. The heatwave is part of a broader pattern of unusually high temperatures already impacting parts of southern Pakistan, where temperatures in cities like Nawabshah, Larkana, and Jacobabad have already surged to around 46-47°C. The Pakistan Meteorological Department has forecast that these heatwave conditions will persist across Sindh, South Punjab, and Balochistan until April 18. 

What Else Is Happening?

⚽Arsenal has reached their first Champions League semifinal in 16 years, defeating Real Madrid by 5-1 across the two legs.

💰Gold prices jumped to a fresh high as investors fret over the impact of the trade war between the US and China. Spot gold touched $3,357.40 per ounce on Wednesday, before dipping from its peak.

🪐Scientists have found new evidence that a faraway planet called K2-18b could be home to life, as they detected signs of molecules which on Earth are only produced by simple organisms. But the team and independent astronomers stress that more data is needed to confirm these results.