Good afternoon,

Today’s news: Globally, Canada’s new PM, Iran, China and Russia kick off joint military drills, and updates from Syria and Ukraine. Locally, SBP keeps policy rate unchanged, Passco speeds up wheat sales to avoid losses, & Torkham border breakthrough reached.

☕ Grab your chaye, let’s go.

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Around The World

Mark my words. Mark Carney has won the race to succeed Justin Trudeau as Canada's prime minister, vowing to win the trade war against the US as he takes charge of Canada at a time of deep instability. Carney will be sworn in as PM in the coming days and will lead the Liberals in the next general election. Much of Carney's victory speech focused on Trump's "unjustified tariffs", as he said Canada will keep its retaliatory tariffs in place until “the Americans show us respect.”

Something’s gotta give. Moscow says it has made new gains in Ukraine’s Sumy region and Russia’s Kursk region, recapturing multiple villages. Meanwhile, Ukrainian President Zelenskyy said he was “fully committed” to having a constructive dialogue with the US to end the war. US and Ukrainian negotiators are set to meet for talks in Jeddah on Tuesday, with Trump’s administration vying to secure a ceasefire and a framework for a peace agreement. Read the latest developments here.

Squad goals. Warships from Iran, China and Russia kicked off their annual joint exercises in the Gulf of Oman on Monday, showing off their military ties. The “Security Belt-2025” drills are the fifth joint naval exercise Iran, China, and Russia have held since 2019. When asked about the drills on Sunday, Trump said he is not at all concerned about the show of force by the three US adversaries.

Update from Syria. Syria’s interim President Ahmed al-Sharaa has launched an investigation after hundreds of people were killed in fighting between security forces and fighters loyal to ousted President Bashar al-Assad in the coastal cities. The fighting began after the pro-Assad fighters coordinated attacks on security forces. The attacks spiralled into revenge killings as thousands of armed supporters of Syria’s new leadership went to the coastal areas to support the security forces. At least 745 Alawite civilians have been killed, as well as about 125 members of the government’s security forces and 148 pro-Assad fighters. According to eyewitnesses and videos, armed supporters of the Syrian government carried out field executions and spoke of purifying the country, as they murdered civilians.

Pakistan

Hot, then cold. Defying market expectations, the SBP’s Monetary Policy Committee (MPC) kept the policy rate unchanged at 12%. Inflation dropped more than expected in February, but stubbornly high core inflation and external pressures, like rising imports and weak financial inflows, have kept the central bank cautious. Analysts had widely predicted a 50bps cut, banking on falling inflation and stable reserves. However, concerns over IMF reviews and currency depreciation likely tipped the scales in favor of maintaining the status quo. The MPC remains focused on keeping inflation within the 5-7% target range.

Don’t wheat too long. Minister for National Food Security, Rana Tanveer Hussain, instructed the Pakistan Agricultural Storage and Services Corporation (Passco) to speed up the sale of wheat stocks ahead of the new harvest to prevent financial losses and maintain market stability. As of March 6, 2025, Passco had 2.47 million tonnes of wheat in stock, after selling 578,934 tonnes from April 2024 to March 2025. Additionally, the corporation had procured 1.79 million tonnes during the 2024 wheat crop season. Passco officials assured that they were actively working to maintain national food security and stabilize the market through various measures, including improved coordination with agencies and provincial authorities to expedite sales.

Finally! A breakthrough was reached at the Torkham border on Sunday as Pakistani tribal elders and traders met with their Afghan counterparts to resolve tensions following weeks of border closure. The discussions focused on the alignment of the Pak-Afghan border and the reconstruction of a disputed Afghan border post. The jirga proposed a temporary ceasefire and called for fresh Afghan guarantees to prevent further violations, which would enable the border to remain open. It was also agreed that the resolution of political and security issues should be separated. The Afghan side was given time to consult Kabul before finalizing the peace terms.

Lemme tell you something. President Asif Ali Zardari addressed the joint session of parliament on Monday, marking the start of the parliamentary year. Amid opposition protests, he urged lawmakers to focus on good governance, political stability, and strengthening democracy. 

It’s a new day. The Ministry of Religious Affairs and Interfaith Harmony has officially declared March 15, 2025, as the “Day of Protection of the Sanctity of Prophethood” to address the increasing incidents of blasphemy and sacrilegious content, particularly online. The initiative comes amid a rising number of online blasphemy cases with private groups accusing young individuals of blasphemy, which has sparked public outrage and sometimes led to violent incidents. The ministry's spokesperson emphasized that the day will focus on curbing these incidents, particularly on social media platforms, and launching an awareness campaign across the country.

What else is happening?

🏆India claimed back-to-back global cricket tournaments yesterday with a four-wicket victory over New Zealand in the ICC Champions Trophy final in Dubai.

🤖China’s top economic officials have vowed to set up a state-backed fund to support innovation in AI, quantum technology, and hydrogen energy storage. The fund is expected to attract nearly 1 trillion yuan ($138 billion) in capital over 20 years from local governments and the private sector.