Good afternoon,

Today’s news: Globally, Updates from Gaza, Iran, and the US trade deal with Vietnam.  Locally, the story of the day: PML-N led coalition secures two-thirds majority in NA after Constitutional Bench verdict.

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Around The World

Latest from Gaza. More than 300 Palestinians have been killed by Israeli forces in the last 48 hours, in over 26 bloody massacres. At least 73 people have been killed by Israel since dawn on Thursday, including 33 desperate aid seekers at the controversial Israeli and United States-backed Gaza Humanitarian Foundation aid sites. Additionally, US contractors say that their colleagues guarding aid distribution sites in Gaza have been using live ammunition and stun grenades as hungry Palestinians scramble for food.

UNwelcomed. Iran’s President Masoud Pezeshkian has signed a law suspending cooperation with the International Atomic Energy Agency (IAEA), amid growing tensions between Tehran and the UN nuclear watchdog. Iran blames the IAEA for collaborating with Israel and providing a pathway for strikes on its nuclear facilities, an accusation which the agency denies. According to the parliament resolution, IAEA inspectors will not be allowed to visit nuclear sites without approval from Iran’s Supreme National Security Council.

Friends, some benefits. President Trump announced on Wednesday that the US has reached a trade agreement with Vietnam, pulling off the administration’s third significant deal ahead of a self-imposed July 9 deadline. Trump said the United States will charge a 20% tariff for Vietnamese exports into America, and a 40% tariff for “transshipping.”

Story of the Day - Ruling Coalition Secures Two-Thirds Majority

What happened? The PML-N-led ruling coalition has secured a commanding two-thirds majority in the National Assembly after the Election Commission of Pakistan (ECP), acting on a landmark Supreme Court verdict, reallocated 74 reserved seats for women and non-Muslims to allied parties, which were originally meant for PTI-backed independents.

What was the verdict? A 10-member Constitutional Bench (CB) of the Supreme Court overturned its earlier July 12, 2024, judgment that had entitled the PTI to reserved seats through its alignment with the Sunni Ittehad Council (SIC). In a 7-3 majority decision, the CB restored the Peshawar High Court's March 2024 ruling, which had deprived SIC (and by extension, PTI) of reserved seats because it was not a parliamentary party.

The court ruled that PTI, having fielded candidates as independents, could not retroactively claim reserved seats by affiliating with SIC post-election. The ECP, following this judgement, notified 74 lawmakers across the National and Provincial assemblies—seats now split among parties already present in parliament. The redistribution has pushed the ruling coalition’s NA strength to 235, surpassing the 224 needed for a two-thirds majority in the 336-member house. Read the update here. 

What happens now? The verdict has reignited debate over the controversial 26th Amendment, which in 2024 created the Constitutional Bench with exclusive authority over constitutional cases, sidelining regular Supreme Court benches. Meanwhile, PM Shehbaz Sharif has met KP Governor Faisal Kundi and ANP chief Aimal Wali Khan to assess options for unseating the PTI-led KP government. Kundi was tasked with engaging opposition MPAs and consulting allies, including JUI-F. However, Aimal Wali advised letting the provincial government “collapse on its own,” warning that forced removal could backfire.

Pakistan

A win is a win. The State Bank of Pakistan’s (SBP)  foreign reserves jumped by $5 billion to reach $14.51 billion at the end of FY2025, surpassing the IMF’s target of $13.9 billion. Pakistan’s forex reserves stood at $9.39 billion at the end of FY2024, and have now climbed to their highest level since early 2018. This surge is attributed to substantial foreign inflows received last week from international financial institutions and lenders.

Baku bound. Pakistani PM Shehbaz Sharif will be in Azerbaijan from today to attend the two-day 17th Economic Cooperation Organization (ECO) summit in Baku, where regional leaders will meet to discuss sustainable growth, climate resilience, and increased intra-regional trade. The ECO is a 10-member regional bloc comprising countries from Central and South Asia, the Caucasus, and the Middle East. 

Flood forewarning. The Pakistan Meteorological Department (PMD) issued fresh flood warnings on Thursday as new monsoon rains are expected in parts of the Punjab and Khyber Pakhtunkhwa provinces, with the national death toll from rain-related incidents rising to 64 in just over a week.

What Else Is Happening?

🦾Pakistani health-tech Bioniks has successfully fitted its first prosthetic limb in Gaza for a young girl, who lost her arm during the war and has now become the first beneficiary of Bioniks’ humanitarian initiative aimed at victims in Gaza.

⚖️A jury in the US has found musician Sean “Diddy” Combs guilty of prostitution-related offences but cleared him of racketeering conspiracy and sex trafficking after a federal criminal trial.