Good afternoon,

Today’s news: Globally, Trump threatened Hamas, EU leaders will convene in Brussels, and South Korean jets accidentally dropped bombs during a live-fire exercise. Locally, SBP to cut interest rates + inflation, protests in Chilas intensify, and Torkham border clashes continue.

☕ Grab your chaye, let’s go.

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

Around The World

Off-track. US President Donald Trump issued what he said was a “last warning” to Hamas to release all of the hostages in Gaza immediately or he would send Israel “everything it needs to finish the job”. The comments came just hours after the US confirmed reports that it was negotiating directly with Hamas about hostages and the Gaza ceasefire, in a move that goes against its tradition of not talking to groups it considers terrorist organizations. 

Hamas brushed off Trump’s latest threat and reiterated that it will only free the remaining Israeli hostages in exchange for a lasting ceasefire in the Gaza Strip. Hamas also accused Trump and Israeli Prime Minister Benjamin Netanyahu of trying to back out of the ceasefire agreement they reached in January. Meanwhile, Palestinians in Gaza are going hungry as Israel’s blockade causes high prices and food shortages, with warnings that stocks could run out in less than two weeks.

Update from South Korea. Fifteen people in South Korea were injured after a pair of fighter jets accidentally dropped eight bombs in a civilian district during a live-fire military exercise. South Korea's Air Force said that it was investigating the incident and apologized for the damage, adding it would provide compensation to those affected.

Circling back. EU leaders will gather in Brussels today for a special council on defense, as France's President Emmanuel Macron warned that the continent was at a turning point of history. As well as rearmament, leaders are expected to discuss how the body can further support Kyiv in the face of Trump's announcement that he would suspend aid to Ukraine. The United States also suspended intelligence sharing with Kyiv yesterday, in a move that could severely restrict the Ukrainian military’s ability to strike Russian forces.

Pakistan

Smoke and mirrors. The State Bank of Pakistan will likely reduce its key interest rate by up to 50 basis points (bps) on Monday, marking its seventh consecutive cut as inflation continues to decline. Since June 2024, the SBP has lowered interest rates by a total of 1,000bps, bringing it down from a record high of 22% to 12% in January 2025. Experts say the fall in inflation — which dropped to 1.5% in February 2025, the lowest since 2015, down from 2.4% in January — gives the SBP room for further reductions.

Low inflation alongside shrinking industries, high unemployment, and rising poverty reflects a "jobless, non-inclusive growth" model where economic stability exists on paper but fails to create jobs, boost wages, or improve living standards. With large-scale manufacturing in decline and growth concentrated in non-productive sectors, the benefits remain limited to a small segment of the economy. Read more, here. 

Stalled. Protests in Chilas over delays in Diamer-Bhasha Dam talks have intensified, with demonstrators entering Wapda offices and locking them in a bid to halt construction. The protesters, now in their 18th day of the sit-in, demand the implementation of their charter. Despite a federal committee's previous assurances, no progress has been made and negotiations have not yet started. Local officials are urging the federal government to address the issue urgently, warning that continued delays could worsen the situation. 

From the borders. Clashes between Pakistani and Afghan forces at the Torkham border have entered their third day, with sporadic artillery fire injuring a civilian and damaging homes. Both sides targeted hilltop checkpoints and military installations. Violence erupted on Monday evening with heavy gunfire and shelling erupting during Ramazan taraweeh prayers, causing panic in nearby areas. The escalation is due to border closure that began on February 21 due to disputes over infrastructure modifications, which has already led to significant economic losses, with 5,000 trucks stranded on the Pakistani side causing daily losses of $1.5 million.

Meow. The Foreign Office rejected Indian Foreign Minister Jaishankar’s comments on Azad Jammu and Kashmir (AJK), urging India to withdraw from the occupied region. Jaishankar had claimed that the Kashmir dispute would be resolved if AJK is returned to India. The FO countered that Jammu and Kashmir remains a disputed territory and dismissed India's claims that elections or economic initiatives in occupied Kashmir could replace Kashmiris' right to self-determination.

What else is happening?

🐲Behold the new contender for world’s most expensive snack! A Cheeto shaped like the beloved Pokémon Charizard has sold at auction for $87,840.

🦠 Researchers have found that the proteasome, known for recycling proteins, also releases potent bacteria-killing chemicals, reshaping our understanding of how we are protected against infection. This discovery is also vital in developing new antibiotics against superbugs that resist our current drugs.

Today In History

Today in 1869, chemist Dmitri Mendeleev introduced his concept of a periodic table of elements at the Russian Chemical Society meeting in St. Petersburg.

Also in 1912, Oreo cookies were first introduced on this day by the National Biscuit Company.