Good afternoon,

Today’s news: Globally, updates from Iran, India, and Moldova. Locally, Inflation edges up to 5.1%, Pakistan to import 7m cotton bales, Khunjerab trade reopens, and FBR rejects tax deadline extension rumors.

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Around The World

Nuclear appetite. Sweeping UN economic and military sanctions have been reimposed on Iran, ten years after they were lifted in a deal over its nuclear programme. The new measures took effect as the UK, France, and Germany activated the snapback mechanism, accusing Iran of continued nuclear escalation and lack of cooperation. The sanctions again freeze Iranian assets abroad, halt arms deals with Tehran, and penalize any development of Iran’s ballistic missile program.  

Iran had suspended inspections of its nuclear facilities - a legal obligation under the terms of the 2015 deal - after Israel and the US bombed several of its nuclear sites and military bases in June. Its President, Masoud Pezeshkian, insisted last week that the country had no intention of developing nuclear weapons.

Iran’s Parliament briefly denounced the sanctions before going into a closed-door session likely to discuss the country’s response. Meanwhile, Iran’s rial currency fell to a new record low of 1.1 million to $1, sending food prices even higher and making daily life that much more challenging. Experts warn about a new round of fighting between Iran and Israel, as well as potentially the US, as the missile sites struck in June now appear to be being rebuilt.

Stampede in India. At least 40 people have died and over 124 have been injured in a crush at a political rally in the southern Indian state of Tamil Nadu. Tens of thousands of people had gathered at a campaign event for actor-turned-politician Vijay in Karur district. The Police have filed a case against three senior members of Vijay's party with potential charges related to homicide and negligent conduct.

She’s the man. The pro-EU party of Moldovan President Maia Sandu has claimed victory and a new majority in parliament in elections seen as critical for her country's future path to the EU. Sandu had warned of Russian interference after voting, saying the future of her country, flanked by Ukraine and Romania, was at stake. Sandu's Party of Action and Solidarity (PAS) secured 50% of the vote, with 99.9% of the 1.6m votes counted, far ahead of the pro-Russian Patriotic Electoral Bloc on under 25%. Turnout was 52%, higher than in recent years.

Pakistan

Easing up. Pakistan’s headline inflation is expected to rise to 5.1% in September from 3.0% in August, mainly due to surging food prices, though it remains below 6.9% a year earlier. Inflation has eased from a record 37.97% in May 2023 amid tight monetary policy and stabilization efforts under a $7 billion IMF program, but recent food price spikes, flood disruptions, and higher import volumes pose significant risks. The central bank is likely to keep interest rates unchanged in October, while authorities stress fiscal discipline crucial to sustaining disinflation and setting the stage for future growth.

Bale-out. Pakistan is expected to import up to 7 million bales of cotton this year after devastating floods wiped out hundreds of thousands of acres of crops, with total agricultural damage estimated at 2.5 million acres (about 7.7% of cultivated land), threatening the government’s 4.2% growth target. Domestic cotton output is expected to fall to 6.5–7 million bales against consumption of 12–14 million, forcing reliance on imports that could pressure foreign reserves, which have stalled at $14 billion. Textile millers and analysts project that over 30% of cotton will be imported to meet industry demand.

Update from GB. Trade and travel between Pakistan and China through the Khunjerab Pass resumed after Gilgit-Baltistan traders ended a 68-day sit-in in Sost following an agreement with the federal government. It granted Rs. 4 billion in annual tax exemptions on goods imported from China for local consumption in GB, subject to review every two years and withdrawal if smuggling occurs. The deal also included waivers on demurrage and port charges for stuck consignments, expedited tribunal orders, and commitments to develop border areas and boost GB exports. 

File your taxes! The FBR has dismissed reports of any extension in the September 30 deadline for filing income tax returns for the 2025 tax year, calling such claims false and emphasizing that its IRIS system is fully functional. It urged taxpayers to file accurately and on time to avoid penalties and late-filer status, noting that most taxpayers are unaffected by floods and have had ample time to comply.

What Else Is Happening?

🏏India defeated Pakistan by five wickets in the controversy-hit Asia Cup final yesterday, after which the champions refused to accept the winner’s trophy from Asian Cricket Council (ACC) Chairman Mohsin Naqvi.

🗃️xAI filed a lawsuit accusing OpenAI of poaching employees to steal trade secrets, the latest move in the contentious battle between Musk and his former company.

🧎Knees are arguably one of our most important joints, but also one of the most poorly looked after. Here’s how to future-proof your knees with simple exercises.