Friday, 18 July 2025

House approves US$832 billion defense funding

According to The Hill, House approved legislation early Friday allocating roughly US$832 billion in funding for defense programs for fiscal 2026. The passage came just weeks after Republicans approved a separate US$150 billion plan to advance President Trump’s defense priorities.

The GOP-led chamber approved the bill 221-209, mostly along party lines; five Democrats voted in favor of the bill, and three Republicans opposed it.

The measure marks only the second appropriations bill Republicans have been able to pass for 2026, after GOP appropriators said the effort to pass Trump’s tax and spending cuts megabill dominated the party’s focus over the past few months.

The bill passed Friday would boost funding for active, reserve and National Guard military personnel by US$6.6 billion above current levels, to a total of US$189 billion. It also allows for an increase of 3.8% in basic pay for military personnel, to take effect in January.

It calls for US$174 billion for procurement, up US$6.5 billion from current levels, and would provide US$283 billion for operation and maintenance, a roughly US$7 billion decrease below 2025 levels.

The bill also includes about US$148 billion for research, development, test and evaluation, as well as boosts for Defense Department health programs and overseas humanitarian, disaster, and civic aid programs.

The bill comes after Republicans greenlit additional defense dollars as part of Trump’s “big, beautiful bill” earlier this month. 

That plan called for US$25 billion to fund Trump’s “Golden Dome” missile defense system, with billions more aimed at items such as shipbuilding and the maritime industrial base, munitions and nuclear deterrence. 

Democrats have risen in sharp opposition to the overall defense appropriations plan, which also seeks to codify Trump’s actions targeting diversity, equity, and inclusion efforts, advance prohibitions for funding for abortion-related travel, and block funds for gender-affirming surgeries.

PSX benchmark index closes at 138,597 points

Pakistan Stock Exchange (PSX) sustained its bullish momentum throughout the week in anticipation of strong earnings ahead of the start of the result season.

The benchmark index touched its all-time high closing of 138,665 points on Thursday, but closed the week at 138,597 points on Friday July 18, 2025.

The market participation declined, with average daily traded volumes falling by 19.5%WoW to 763 million shares, down from 948 million shares a week ago.

On the macroeconomic front, for the first time in 14 years, Pakistan posted a current account surplus, of US$2.1 billion as against a deficit of US$2.1 billion during the same period last year.

IT exports for FY25 increased by 18%YoY to US$3.8 billion, from US$3.2 billion in FY24.

The LSM index witnessed an increase of 2.3%YoY in May 2025.

As regards sectoral developments, fertilizer offtakes witnessed an improvement for second consecutive month, with urea sales rising by 21%YoY during June 2025.

Auto financing for June 2025 was reported at PKR277 billion, up 1.98%MoM, marking an increase for the seventh consecutive month.

Foreign exchange reserves held by State Bank of Pakistan (SBP) rose by US$23 million to US$14.5 billion as of July 17, 2025. Despite this increase PKR depreciated against the greenback closing the week at PKR284.87/US$.

Other major news flow during the week included: 1) Telecom sector welcomed ADB’s call for lower taxes, 2) Pakistan-Afghanistan trade hit US$1.0 billion in 1HCY25, 3) Banking sector deposits rose to PKR35.498 trillion at end June 2025, 4) China expressed it readiness to deepen ties with Pakistan in agriculture, industry and mining, and 5) Cabinet okayed 15% hike in EOBI pensions.

Vanaspati & Allied Industries, Property, Miscellaneous, Fertilizer, and Inv.Banks/ Inv. Cos/ Securities.Cos were amongst the top performing sectors, while Jute, Woollen, Textile Spinning, Engineering, and Leather & Tanneries were among the laggards.

Major selling was recorded by Banks/ DFI with a net sell of US$34.0 million. Individuals absorbed most of the selling with a net buy of US$22.3 million.

The top performing scrips of the week were: PSEL, ABL, JVDC, FFC, and PIBTL, while laggards included: SEARL, KOHC, BNWM, NATF, and INIL.

According to AKD Securities, Pakistan Stock Exchange is anticipated to maintain a positive trend in the coming weeks, driven by expectations of strong corporate earnings.

The benchmark index is anticipated to sustain its upward trajectory, with a target of 165,215 points by end December 2025.

The market will be primarily driven by strong earnings in Fertilizers, sustained ROEs in Banks, and improving cash flow of E&Ps and OMCs, benefiting from falling interest rates and economic stability.

The top picks of the brokerage house include: OGDC, PPL, PSO, FFC, ENGROH, MCB, HBL, FCCL, KOHC, INDU, and SYS.

Israel levels thousands of buildings in Gaza

According to the Saudi Gazette, Israel has demolished thousands of buildings across Gaza since it withdrew from a ceasefire with Hamas in March, with entire towns and suburbs — once home to tens of thousands of people — levelled in the past few weeks.

Satellite images show massive amounts of destruction in several areas which Israel's military command claims to have under "operational control".

Large swathes of it has been caused by planned demolitions, both to already damaged buildings and ones that appeared largely intact.

Verified footage shows large explosions unleashing plumes of dust and debris, as Israeli forces carry out controlled demolitions on tower blocks, schools and other infrastructure.

Multiple legal experts told BBC Verify that Israel may have committed war crimes under the Geneva Convention, which largely prohibits the destruction of infrastructure by an occupying power.

An Israel Defense Forces (IDF) spokesperson said it operated in accordance with international law; that Hamas concealed "military assets" in civilian areas, and that the "destruction of property is only performed when an imperative military necessity is demanded".

The scale of destruction can be clearly seen in the city of Rafah, near the border with Egypt.

In recent weeks, Israeli forces and contractors have levelled large swathes of Rafah.

An analysis of damage by academics Corey Scher and Jamon Van Den Hoek found the destruction in Gaza since April has been most concentrated in the region.

Controlled explosions, excavators and bulldozers have obliterated whole areas.

In July, Israel's Defence Minister Israel Katz outlined plans to establish what he called a "humanitarian city" over the ruins of Rafah, with an initial 600,000 Palestinians being confined there.

The plan has been widely condemned. Former Israeli Prime Minister Ehud Olmert told the BBC that the proposal would be "interpreted as being akin to a concentration camp".

Israel claims its military has "operational control" over large areas of the Gaza Strip which are now militarized zones or have been under evacuation orders.

BBC Verify has identified footage of infrastructure being demolished in 40 locations since the ceasefire ended in March.

Tel al-Sultan was one of Rafah city's most vibrant neighbourhoods. Its densely packed streets were home to Rafah's only specialized maternity hospital and a centre caring for orphaned and abandoned children.

Satellite images showed that much of the area had already been heavily damaged by Israeli bombing and artillery fire, but dozens of buildings had withstood the barrage.

By July 13 the destruction had escalated, with even the shells of damaged buildings swept away and entire blocks torn to the ground. The hospital is one of a handful of buildings left standing.

Similarly, demolitions are now under way in the adjacent Saudi neighbourhood — once home to the city's largest mosque and several schools.

One verified clip showed a tank moving along a street in Rafah while a digger works by the side of the roadIsraeli demolitions are also visible in other parts of the strip which appear to have avoided heavy damage during earlier bombardments.

The farming town of Khuza'a is located about 1.5km (0.9 miles) from the Israeli border.

Before the war the town had a population of 11,000 people and was known for its fertile farmlands and crops such as tomatoes, wheat and olives.

By mid-June, Khuza'a was largely razed by the Israeli forces.

The IDF says it demolished 1,200 buildings in Khuza'a, which it alleged were part of "terror infrastructures" run by Hamas.

A similar story emerges in the nearby town of Abasan al-Kabira, where about 27,000 people lived before the war. Photos taken on May 31 and July 08 indicate that an extensive area was swept away in just 38 days.

Israel has created extensive "security zones" and corridors separating parts of Gaza, and has destroyed large numbers of buildings along and near these routes. Its latest corridor separates western from eastern Khan Younis, including Khuza'a and Abasan al-Kabira.

Since early in the war analysts have suggested that Israel has been attempting to create deep "buffer zones" by destroying buildings near to the border, but some of the areas flattened recently are deep into Gaza.

Monday, 14 July 2025

Trump issues ultimatum to Putin

According to The Hill, US President Donald Trump is seeking to pressure Russia's leader to the negotiating table through a combination of arming Ukraine and threatening 100 percent tariffs on countries that trade with Russia. 

Trump made the announcement during a meeting with NATO Secretary General Mark Rutte in the Oval Office Monday morning. 

It marks a potential turning point for a president who had wanted to pull US support from Ukraine and has repeatedly demonstrated favorable treatment to Putin despite Moscow’s invasion of its neighbor.

“We’re very, very unhappy with Russia, and we’re going to be doing very severe tariffs if we don’t have a deal in about 50 days,” Trump said, after teasing a major announcement. 

Trump and Rutte also officially announced a weapons deal in which NATO countries would foot the bill for US arms shipments to Ukraine, though details on the provisions remain vague. 

“It’s everything. It’s Patriots. It’s all of them. It’s a full complement with the batteries,” Trump said, adding that the batteries could arrive in Ukraine within days.

Ukraine is desperate for increased air defenses as Putin has ramped up aerial attacks on its cities in recent months.

Ukrainian leader Volodymyr Zelensky met with Trump's envoy retired Lt.  Gen. Keith Kellogg earlier in the day and said he spoke with Trump and Rutte later on.

"Agreed to call more often and coordinate our steps further. Thank you, Mr. President! Thank you America!" Zelensky wrote on Facebook. 

There's no sign that Trump is seeking to send offensive weapons that would allow Ukraine to strike further into Russia, which Ukraine hawks say may be necessary to move Putin off his maximalist war demands.

Former NATO chief and retired Navy Adm. James Stavridis told CNN on Monday he would like to see Ukraine given harpoon missiles, surface-to-surface weapons and F-16 aircraft. 

"I think that is what could move Putin to the negotiating table, which is what we want on our side,” he said. 

Saudi energy minister urges action to address energy poverty

Saudi Arabia’s Minister of Energy, Prince Abdulaziz bin Salman, emphasized the urgent need to tackle global energy poverty during his address at the OPEC International Seminar in Vienna on Monday, reports Saudi Gazette.

Highlighting one of the most pressing global energy challenges, the minister cited United Nations estimates that 1.2 billion people suffer from energy poverty — a figure he believes could be nearly three times higher in reality.

He noted that over two billion people still rely on traditional, unsafe cooking fuels, which contribute to pollution and health hazards.

Prince Abdulaziz revealed that a dedicated Saudi team is actively working across Africa and Southeast Asia to address energy poverty, engaging directly with governments to implement practical solutions.

The minister underscored the Kingdom’s consistent energy policies and its commitment to translating them into real-world outcomes.

He cautioned that the global energy transition should not come at the expense of economic development, urging that each country’s economic context be considered in crafting energy strategies.

He further stressed the need for a balanced global energy mix, where oil and gas remain essential components alongside the expansion of renewable energy sources.

With global population projections reaching nearly 10 billion by 2050 and energy demand expected to rise by 50%, he said a diverse approach is crucial to ensuring sustainable energy access.

 

Saturday, 12 July 2025

Iranian rationale of attacking US base in Qatar

On June 23, 2025, as tensions between Iran and Israel reached their highest point in years, several Iranian ballistic missiles struck the Al Udeid Air Base in Qatar. This was no ordinary target, it is the main hub for US military operations in West Asia and a key symbol of American power projection in the region. 

Iran informed the US about the attack 12 hours before it was to happen, according to information previously disclosed by the Tehran Times. The official American response was swift and predictable - both Washington and Doha downplayed the incident, claiming there were no casualties or significant damage. However, reality soon overrode the narrative. Satellite images published days later confirmed the destruction of a geodesic dome that housed critical communication systems of the US Central Command.

Far from being anecdotal, this episode marks a strategic turning point. Iran has shown it can strike critical infrastructure under American protection, redrawing the contours of deterrence in the Persian Gulf. The missile ceases to be merely a weapon of war; it becomes a tool of sovereignty and strategic assertion.

Between official denial and satellite evidence

The US version was clear and firm from the outset “No casualties, no damage,” repeated Pentagon spokespeople. But satellite evidence, analyzed by international media and independent agencies, told a different story.

Images taken between June 23 and 25 showed the disappearance of a US$15 million communications dome, debris, and collateral damage to surrounding structures. Although the base remained operational, the loss of a key component for electronic warfare cast doubt on the effectiveness of US missile defenses—and on the credibility of the official account.

Washington’s refusal to acknowledge the strike follows a dual logic - maintaining control over the media narrative and avoiding the perception of vulnerability before an actor—Iran—that, despite sanctions and isolation, has reached a notable level of technological sophistication.

Al Udeid: A symbol of hegemony in question

Located about 30 kilometers from Doha, Al Udeid is more than just a military base. It serves as the forward headquarters of CENTCOM and is the nerve center for coordinating operations in Iraq, Syria, and Afghanistan. Its symbolism goes beyond the military - it is the cornerstone of the security architecture the United States has built in the region since the First Persian Gulf War.

The fact that Iran managed to strike such a site—and that US forces reportedly evacuated aircraft and sensitive personnel beforehand—does not diminish the significance of the attack. On the contrary, it indicates that Tehran sent a precise warning and that Washington took it seriously. Deterrence, long monopolized by the US and Israel, is no longer a one-way street.

The missile as national strategy: Evolution and autonomy

The strike on Al Udeid was not an isolated act but the result of a deliberate evolution. For over two decades, Iran has systematically invested in ballistic missile development as an asymmetric response to the air and nuclear superiority of its adversaries. Faced with Western restrictions, Tehran adopted a doctrine of defensive self-sufficiency based on three pillars:

Diversification: Short, medium, and long range missiles like Shahab-3, Ghadr, Qiam, and Sejjil, capable of reaching Israel, US bases, and parts of southern Europe.

Mobility: Mobile launch systems that are hard to detect and neutralize.

Precision: Advanced guidance systems that have reduced the margin of error to levels that even Western analysts now acknowledge.

Unlike other regional missile programs, Iran’s development is overwhelmingly domestic. This technical and logistical autonomy has allowed the country to bypass embargoes and threats, turning the missile into the backbone of its defense doctrine.

Following Israel’s offensive against nuclear, military, and civilian sites inside Iran, Tehran responded with a large-scale launch of over a hundred ballistic missiles and suicide drones targeting Israeli military positions. For the first time, Iran’s ballistic arsenal was used en masse in open conflict.

Despite the Iron Dome and other Israeli defenses, several missiles penetrated and struck Tel Aviv, Haifa, and military bases. The missile attacks not only caused physical damage but also had a strategic impact: saturating defenses, prompting emergency deployments, and creating unprecedented internal pressure on Israeli authorities.

The Al Udeid strike was the culmination of a graduated strategy - to hit Israel, neutralize its offensive capacity, and send a direct message to the United States. The ceasefire that followed days later cannot be understood without factoring in the missile component as a deterrent force.

Sovereignty and independence: The Iranian perspective

Since the 1979 Islamic Revolution, Iran’s foreign and defense policy has been rooted in the principle of non-negotiable sovereignty. In a hostile environment—surrounded by foreign bases and under sanctions—the development of ballistic missiles has not been framed as a belligerent impulse, but as a survival strategy.

Tehran maintains that its only guarantee in the face of threats like the US “maximum pressure” campaign or Israeli targeted strikes is its ability to respond. Effective deterrence, it argues, is only possible when there is certainty that any aggression will come at a high cost.

The attack on Al Udeid follows this logic - it was calibrated, precise, and deliberately non-lethal. Its aim was not to trigger a regional war but to underscore that Iran has both the capacity—and the resolve—to defend its vital interests. The missile, in this vision, is not a threat; it is a political argument.

 

Israel boasts destruction of Beit Hanoun

According to media reports, Israeli Defense Minister Israel Katz on Friday shared an aerial image of Beit Hanoun, a city in northern Gaza, boasting of its total destruction and declaring, "After Rafah and Beit Hanoun ... there is no refuge for terrorism."

The image, posted to Katz's official X account, depicts a flattened urban landscape — reduced to rubble and ruins — revealing the extent of devastation inflicted on the town.

Beit Hanoun, located along Gaza’s northern border with Israel, was among the first areas invaded by the Israeli army during its ground operation that began on October 28, 2023.

More than 21 months into the war on Gaza, Palestinian armed factions have continued to launch organized ambushes in the area, challenging Israel’s military objectives.

Last week, five Israeli soldiers from the “Netzah Yehuda” Battalion were killed and 14 others injured — two critically — in an attack in Beit Hanoun, according to official Israeli military reports.

A military investigation confirmed that Hamas fighters detonated three explosive devices targeting an Israeli foot patrol, followed by direct gunfire.

The Israeli military has increasingly relied on heavy artillery and aerial bombardment to enforce control over Beit Hanoun, which it recently claimed to have surrounded.

On June 2, 2024, Gaza’s Municipal Emergency Committee declared Beit Hanoun a “disaster area” due to near-total destruction of infrastructure, essential services, and the collapse of humanitarian conditions. Before the war, the town had a population of around 60,000 spread over 17,000 dunams.

Despite mounting global pressure, Israel continues to reject calls for a ceasefire. Since the launch of its full-scale offensive in late October 2023, Israeli bombardments have killed nearly 57,800 Palestinians, most of them women and children.

The destruction has triggered catastrophic humanitarian conditions across Gaza, with widespread food shortages, the collapse of medical facilities, and the rapid spread of disease.

The war has drawn international legal scrutiny. In November, the International Criminal Court issued arrest warrants for Israeli Prime Minister Benjamin Netanyahu and former Defense Minister Yoav Gallant over war crimes and crimes against humanity. Israel also faces a genocide case at the International Court of Justice.