Good afternoon,

Today’s news: Globally, Pahalgam attack suspects killed in India, Tsunami waves hit US and Japan after 8.8 earthquake hits Russia, and updates from Gaza. Locally, SBP holds the rate at 11%, KP rejects the Bajaur operation, and 160 tourists were rescued from flood-hit Naran.

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Around The World

Pahalgam attack suspects killed. Indian Home Minister Amit Shah has said three suspected rebels have been killed in Indian-administered Kashmir, who were also responsible for the killings of tourists in Pahalgam. The heavily armed suspects were killed in a joint operation by the military, paramilitary, and police on the outskirts of Srinagar. Shah said all three were Pakistani nationals and identified two of them as members of Lashkar-e-Taiba, a Pakistan-based armed group. 

Earthquake and Tsunami. Tsunami waves have hit parts of Russia, Japan, and the US after a magnitude 8.8 earthquake struck Russia’s eastern Kamchatka Peninsula. The earthquake is believed to be one of the most powerful ever recorded. Millions of people have been ordered to evacuate in Taiwan, Colombia, Japan, Russia, and some parts of the US West Coast as waves started hitting Hawaii, California, Oregon, Washington, and Alaska. There are no immediate reports of deaths or serious injuries, and the tsunami threat for islands in the Pacific Ocean has been revoked.

Updates from Gaza. British Prime Minister Keir Starmer has announced that the UK will recognise the state of Palestine by September at the UN General Assembly unless Israel ends its war on Gaza and commits to a ceasefire. Families of Israeli hostages being held by Hamas say the plan by the UK and other European countries to recognise a Palestinian state validates terrorism. Meanwhile, the death toll of Palestinians killed by Israeli forces has reached 60,034 since October 2023, according to Gaza's Ministry of Health.

Pakistan

Staying stable. The State Bank of Pakistan (SBP) has maintained its policy rate at 11% in its latest announcement, following a significant reduction from 22% since June 2024. Despite previous cuts, the Pakistan Business Forum (PBF) criticized the current rate as unjustifiably high, especially with inflation dropping to 4%, and urged the SBP to lower the rate to at least 9% to foster economic growth. The PBF also claimed that both interest and exchange rates were being kept artificially high without sound economic reasoning and called on Prime Minister Shehbaz Sharif to intervene.

Cut the action. The Khyber Pakhtunkhwa government has strongly opposed the launch of 'Operation Sarbakaf' in Bajaur, demanding provincial consultation before any military action and vowing to lift the curfew imposed in 16 areas. Protests erupted in Bajaur and surrounding areas, with multiple political leaders condemning the operation and questioning its legality. Meanwhile, the CM announced Rs. 10 million compensation for each person killed and Rs. 2.5 million for the injured, echoing similar aid after recent deadly protests in the Tirah Valley.

Rain & rescue. Rescue teams evacuated 160 tourists stranded by flash floods in Naran and surrounding areas of Mansehra district after heavy monsoon rains triggered flooding and road blockages on Wednesday. Despite difficult conditions, all were safely rescued and treated for injuries, and the Naran road was cleared. As monsoon rains continue to batter Pakistan, the national death toll has risen to 234 since late June, highlighting the devastating impact of seasonal flooding.

What Else Is Happening?

🔎Google has rolled out AI Mode in the UK, which provides users with conversational, AI-generated answers instead of traditional search result links, raising concerns among publishers and sites that rely on traffic from search results. 

🚘 Tesla and Samsung signed a $16.5 billion deal for the manufacturing of Tesla’s next-generation AI6 chips, potentially re-energizing the project that has faced long delays amid Samsung’s difficulties in retaining and attracting major clients.

🚀 Australia’s first attempt to launch an orbital rocket has failed after the Eris rocket, developed by Gilmour Space Technologies, crashed just 14 seconds after liftoff.