Good afternoon,

Today’s news: Globally, updates from Israel, Iran, and Australia. Locally, the Monetary Policy Committee is set to meet today, a surge in cotton prices, and Pakistan's missile test amid rising tensions with India.

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Around The World

The Gaza plan. Israel’s security cabinet voted Sunday to expand military operations in Gaza and establish a new framework for the delivery of aid. The vote came hours after the military said it would mobilize tens of thousands of reservists, strengthening its capacity to operate in the besieged Palestinian territory. The new plan involves “the conquest of territory and remaining there” as the Israeli military will displace the Palestinian population to southern Gaza while carrying out powerful strikes against Hamas.

The cabinet also discussed allowing the resumption of aid deliveries into Gaza by bypassing international aid agencies and distributing supplies directly inside Gaza’s militarised zones. Hamas has rejected this plan, saying aid must be handled by competent international or local government organisations, not used as a tool of political blackmail. An Israeli blockade of all humanitarian aid into the Strip is now in its ninth week. 

Going green. Iran has defended its right to enrich uranium, doubling down on a long-held stance as the next round of nuclear negotiations with the United States in Oman were abruptly delayed. US Secretary of State Marco Rubio had urged Iran last week to halt its enrichment efforts, arguing, “the only countries in the world that enrich uranium are the ones that have nuclear weapons.” However, countries like Germany, Japan, and Brazil also conduct enrichment without possessing nuclear arsenals.

Iranian Foreign Minister Abbas Araghchi took to social media on Saturday to declare that “Iran has every right to possess the full nuclear fuel cycle,” referencing the country’s membership in the Nuclear Non-Proliferation Treaty (NPT). He added that several NPT members enrich uranium while wholly rejecting nuclear weapons, underlining Iran’s argument that its nuclear activities are civilian.

Two times. Australian Prime Minister Anthony Albanese's Labour Party has been re-elected for a second consecutive three-year term. Albanese will now be the first Australian leader to win consecutive elections since John Howard in 2004. The major issues in the election campaign were energy policy and inflation. Both major parties agree that the country faces a cost-of-living crisis and that the country should reach net-zero greenhouse gas emissions by 2050.

Pakistan

Pakistonomy. The Monetary Policy Committee (MPC) of the State Bank of Pakistan (SBP) is set to hold its third meeting of the year today, with analysts split on whether it will reduce the policy rate or maintain the status quo at 12%. At its March 10 meeting, the MPC kept the rate at 12%, despite a 1,000 bps drop since June 2024. Arif Habib Limited expects a 50 bps cut to 11.5%, citing disinflation and room to support recovery. Topline Securities expects no change, pointing to delayed IMF-linked inflows, IMF pressure to keep policy tight, and US tariff risks. 

Since March, Pakistan’s economic indicators have shown some improvement: a $1.2 billion current account surplus, rising reserves, and falling inflation. Oil and petrol prices dropped, while the rupee slipped 0.4%. Still, rising imports and delayed inflows pose external risks, possibly prompting caution from the central bank.

Meanwhile, Moody’s has cautioned that sustained tensions could throw Pakistan’s economic recovery off track, stall efforts to fix its finances, and make it harder to secure much-needed external funding.

Great expectations. Cotton prices in Pakistan have surged after nearly two months of stagnation, driven by a rally in international markets following improved US-China trade ties and a drop in the US Dollar Index. Local prices rose by Rs. 500 per maund, reaching around Rs. 17,500, sparking renewed interest from textile mills and relief for struggling ginners. The earlier slump was linked to duty-free cotton imports under the Export Facilitation Scheme. Meanwhile, the Federal Committee on Agriculture (FCA) has set an ambitious production target of 10.18 million bales for the 2025–26 cotton season, despite consistently falling short in recent years and without detailing provincial allocations.

Off we show. Pakistan has conducted a successful training launch of its 120 km-range Fatah Series surface-to-surface missile as part of the ongoing “Ex Indus” military exercise. The ISPR said the test validated the missile’s advanced navigation and accuracy systems. The launch, witnessed by senior military officials and scientists, comes amid escalating tensions with India. Top civil and military leaders praised the test, reaffirming national readiness and commitment to defense.

What Else Is Happening?

♟️In a national-level Queen’s Gambit, over 80 top chess players from across Pakistan competed in the inaugural Swat Open Chess Championship 2025. 

⚽Bayern Munich has been crowned Bundesliga champion for a record-extending 33rd time with two games remaining after its closest title rival, Bayer Leverkusen, drew a 2-2 tie against SC Freiburg on Sunday afternoon.

💻After nearly 22 years of connecting people across the globe, Skype is shutting down today. Launched in 2003, Skype quickly became a revolutionary tool for free voice and video calls over the internet, amassing more than 300 million monthly users at its peak in the mid-2010s.