India and Pakistan exchange fire for third night in Kashmir
India has accused Pakistan of supporting "cross-border terrorism" after gunmen carried out the worst attack on civilians in Kashmir in 25 years.
The Indian military said on Sunday there had been 'unprovoked' firing of small arms 'initiated by Pakistan' along the Line of Control, which separates the two countries. (Photo: Reuters)
TROOPS from India and Pakistan exchanged fire in Kashmir for a third consecutive night, officials said on Sunday, as relations between the two countries continued to deteriorate.
India has accused Pakistan of supporting "cross-border terrorism" after gunmen carried out the worst attack on civilians in Kashmir in 25 years.
Islamabad has denied involvement, describing attempts to link Pakistan to the attack as "frivolous" and said it would respond to any Indian action.
Indian security forces have launched a manhunt for those responsible for killing 26 men at a tourist hotspot in Pahalgam on April 22.
The Indian military said on Sunday there had been "unprovoked" firing of small arms "initiated by Pakistan" along the Line of Control, which separates the two countries.
"(Our) own troops responded effectively with appropriate small arms fire," the military said.
Pakistan has not yet confirmed the latest exchange of fire.
Indian police have issued wanted posters for three men — two Pakistanis and one Indian — who they say are members of the Pakistan-based Lashkar-e-Taiba group, a UN-designated terrorist organisation.
India's federal home ministry has handed over the investigation to the National Investigation Agency (NIA), which focuses on counter-terrorism.
The agency said it was examining eyewitnesses, scrutinising entry and exit points, and collecting forensic evidence.
"The eyewitnesses are being questioned in minute detail to piece together the sequence of events that led to one of the worst terror attacks in Kashmir," it said in a statement.
Houses bombed
Kashmir has been divided between India and Pakistan since 1947, with both countries claiming the territory in full but administering separate parts.
Rebel groups have waged an insurgency in Indian-administered Kashmir since 1989, demanding either independence or a merger with Pakistan.
On Saturday, soldiers in Indian-administered Kashmir destroyed the family home of one of the Pahalgam attack suspects. The house of Farooq Ahmad Tadwa was demolished in Kupwara district, as part of a series of actions targeting houses of alleged terrorists.
A police official told AFP on condition of anonymity that nine houses belonging to the terrorists have been bombed since the Pahalgam attack.
Following the attack, New Delhi suspended a water-sharing treaty, closed the main land border crossing with Pakistan, downgraded diplomatic ties, and withdrew visas for Pakistani nationals.
In response, Islamabad ordered the expulsion of Indian diplomats and military advisers, cancelled visas for Indian nationals — except for Sikh pilgrims — and closed the main border crossing from its side.
The United Nations has urged both countries to exercise "maximum restraint" and resolve issues "peacefully through meaningful mutual engagement".
The Pahalgam attack marks a change in the pattern of recent Kashmiri rebel attacks, which have usually targeted Indian security forces.
Analysts said an Indian military response may be underway. "There will be military retaliation and we are prepared. We are discussing the nature of the strike," The Indian Express newspaper quoted a top government source as saying on Sunday.
In 2019, a suicide attack killed 41 Indian troops in Kashmir and led to Indian air strikes inside Pakistan, bringing the two countries close to full-scale war.
Chief adviser to the government of Bangladesh Professor Muhammed Yunus speaks during a live interview at Chatham House on June 11, 2025 in London, United Kingdom. (Photo by Leon Neal/Getty Images)
BANGLADESH interim leader Muhammad Yunus said on Wednesday (11) that there was "no way" he wanted to continue in power after elections he has announced for April, the first since a mass uprising overthrew the government.
The South Asian nation of around 180 million people has been in political turmoil since a student-led revolt ousted then prime minister Sheikh Hasina in August 2024, ending her 15-year rule.
Speaking in London, Yunus, asked if he himself was seeking any political post, the 84-year-old Nobel Peace Prize winner said there was "no way", waving his hands in the air for emphasis.
"I think none of our cabinet members would like to do that, not only me", he said.
Yunus was answering questions after speaking at London's foreign policy thinktank Chatham House, the Royal Institute of International Affairs.
He also said he wanted to unveil a "big package" of proposals next month that he dubbed a "July Charter" -- one year on since the students launched the demonstrations that toppled Hasina.
"We want to say goodbye to the old Bangladesh and create a new Bangladesh", Yunus said.
The charter is being drafted by a government "consensus commission", talking to political parties to "find that which are the recommendations they will accept", he added.
Yunus has long said elections will be held before June 2026, but says the more time the interim administration had to enact reforms, the better.
But after political parties jostling for power repeatedly demanded he fix a timetable, he said earlier this month that elections would be held in April 2026.
"Our job is to make sure that the transition is managed well, and that people are happy when we hand over power to the elected government," he said.
"So we want to make sure that the election is right, that is a very critical factor for us. If the election is wrong, this thing will never be solved again".
Yunus is also expected to meet in London with Tarique Rahman, acting chairman of Bangladesh Nationalist Party, which is widely seen as likely to sweep the elections.
Rahman, 59, the son of former prime minister Khaleda Zia, has lived in London since 2008 after being sentenced in absentia under Hasina -- convictions since quashed.
He is widely expected to return to Dhaka to lead the party in polls.
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Donald Trump and Narendra Modi shake hands as they attend a joint press conference at the White House on February 13, 2025.
INDIAN and US negotiators reported progress after four days of closed-door meetings in New Delhi on Tuesday, focusing on market access for industrial and some agricultural goods, tariff cuts and non-tariff barriers, according to Indian government sources.
"The negotiations held with the US side were productive and helped in making progress towards crafting a mutually beneficial and balanced agreement including through achievement of early wins," one of the sources said to Reuters.
The US delegation, led by senior officials from the Office of the US Trade Representative, met Indian trade ministry officials headed by chief negotiator Rajesh Agrawal.
Both sides also considered ways to expand bilateral digital trade through improved customs and trade-facilitation measures, the sources added, noting that “negotiations will continue” with an eye on a quick conclusion of the initial tranche.
Interim pact expected soon
president Donald Trump and prime minister Narendra Modi agreed in February to finalise a bilateral trade agreement by autumn 2025 and to more than double two-way trade to $500 billion by 2030. Officials now expect to seal an interim deal by the end of this month, before Trump’s 90-day pause on reciprocal tariffs expires, including a possible 26 per cent levy on Indian goods.
Commerce minister Piyush Goyal, who is in Switzerland for talks with European counterparts, said India is ready to settle “simpler issues” first. Subsequent rounds could handle more complex matters, with the goal of signing the first tranche by September or October, the officials said.
India turned down US requests for wider access to wheat, dairy and corn while offering lower tariffs on US almonds, pistachios and walnuts. New Delhi also asked Washington to remove its 10 per cent baseline tariff, a step the US side opposed, pointing out that Britain accepted the same duty in its recent deal. India further sought relief from a 50 per cent duty on steel exports.
A 26 per cent tariff on Indian rice, shrimp, textiles and footwear—about one-fifth of India’s merchandise exports—could dent shipments and weigh on foreign investment, the sources warned. India has pledged to increase purchases of American liquefied natural gas, crude oil, coal and defence equipment.
India’s exports to the US climbed 28 per cent to $37.7 billion in the first four months of 2025, while imports rose to $14.4 billion, widening India’s surplus, US data showed.
US voices backing on terrorism fight
Separately, the State Department said the US “reaffirmed its strong support” for India’s fight against terrorism during last week’s visit to Washington by an Indian all-party parliamentary delegation led by Congress MP Shashi Tharoor.
Deputy secretary of state Christopher Landau met the group as part of New Delhi’s outreach following Operation Sindoor, launched after the 22 April Pahalgam attack that killed 26 people.
State Department spokesperson Tammy Bruce told reporters that a Pakistani parliamentary team headed by Bilawal Bhutto Zardari also met officials, including under secretary for political affairs Allison Hooker. “So that meeting occurred,” Bruce said.
Hooker reiterated US support for the current “– as you might imagine, thank God – between India and Pakistan,” Bruce added, referring to the cessation of on-ground hostilities.
Asked about possible Pakistani assurances on action against militants, Bruce declined to share details. On whether Trump might “mediate” on Kashmir, she said: “Well, I – obviously, I can't speak to what's on the mind or the plans of the President. What I do know is that I think we all recognise that President Trump in each step that he takes, it's made to solve generational differences between countries, generational war."
“So, while I can't speak to his plans, the world knows his nature, and I can't speak to any details of what he might have in that regard… But it is an exciting time that if we can get to a point in that particular conflict..,” Bruce said, adding that it is a “very interesting time.”
India has maintained that Jammu and Kashmir and Ladakh are an “integral” part of the country and has rejected any outside mediation.
(With inputs from agencies)
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Reeves said the government would focus investment on security, health, and the economy 'so working people all over our country are better off.'
THE GOVERNMENT is set to announce its medium-term spending and investment plans on Wednesday, with significant increases expected for defence and healthcare, alongside reductions in other areas.
Chancellor Rachel Reeves will present the spending review to parliament, outlining the government’s fiscal strategy aimed at boosting growth. This comes amid concerns about potential economic pressures from a possible return of Donald Trump to the US presidency and his proposed tariffs.
Reeves said the government would focus investment on security, health and the economy “so working people all over our country are better off.” She also said she would “invest in Britain’s renewal.”
Funding boosts are expected for the defence sector and the National Health Service (NHS), while other departments are likely to see spending cuts.
Reeves, the chancellor of the exchequer, has adjusted fiscal rules to give the government more room to invest ahead of the review. At the same time, she aims to balance the budget so that tax revenues cover day-to-day spending, with borrowing reserved for investment.
The changes have enabled the Treasury to increase borrowing, particularly for housing and energy infrastructure projects, resulting in a £113 billion windfall over five years.
'Balance the books'
Ahead of the announcement, the government pledged billions for the nuclear sector, including investment in the Sizewell C nuclear power plant.
Citing the ongoing conflict in Ukraine, the UK previously committed to raising defence spending to 2.5 per cent of GDP by 2027, and 3.0 per cent by 2034, partly funded by cuts to international aid.
In addition to the expected NHS funding increase, £86 billion is planned for science and technology by 2030. Urban public transport in England will also see investment more than double, reaching over £15bn by 2030.
The government recently reversed its decision to scrap winter fuel payments for millions of pensioners, following criticism from within the party. Late on Tuesday, it also confirmed Reeves is expected to announce £39bn in funding for affordable housing over the next decade, aimed at building 1.5 million homes.
However, the increased focus on some sectors means other departments may face budget reductions.
Joe Nellis, economic adviser at MHA, said Reeves "will need to balance the books by making cuts to unprotected department budgets." He pointed to the Home Office, transport, local councils, police and prisons as possible areas for cuts.
Reports suggest the Treasury has faced tensions with the interior ministry over police funding and with the energy department over carbon reduction targets.
Since taking office in July, Labour has already made cuts to public spending under tight fiscal conditions. That includes reductions to disability welfare, aimed at saving more than £5bn by 2030.
Although the UK economy grew by 0.7 per cent in the first quarter, exceeding expectations, analysts have warned that such growth may not continue.
“If growth fails to emerge, then she (Reeves) will either have to cut further areas of public sector spending or raise taxes again in this year’s Autumn Budget,” said Nellis.
(With inputs from agencies)
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The Canary Wharf business district including global financial institutions in London.
THE UK’s unemployment rate has increased to its highest level since July 2021, according to official data released on Tuesday, following the impact of a business tax rise and the introduction of US tariffs.
The Office for National Statistics (ONS) said the unemployment rate rose to 4.6 per cent in the three months to the end of April. This was up from 4.5 per cent in the first quarter of the year.
The figures reflect the early effects of a business tax increase announced in the Labour government’s first budget in October. April also marked the beginning of a baseline 10 per cent tariff on the UK and other countries introduced by US president Donald Trump.
“There continues to be weakening in the labour market, with the number of people on payroll falling notably,” said Liz McKeown, director of economic statistics at the ONS.
“Feedback from our vacancies survey suggests some firms may be holding back from recruiting new workers or replacing people when they move on,” she added.
The data also showed a slowdown in wage growth. Analysts said the overall picture could encourage the Bank of England to continue cutting interest rates into 2026. The trend pushed the pound lower but supported gains in London’s stock market during early trade on Tuesday.
“With payrolls falling, the unemployment rate climbing and wage growth easing, today’s labour market release leaves us more confident in our view that the Bank of England will cut interest rates further than investors expect, to 3.50 per cent next year,” said Ruth Gregory, deputy chief UK economist at Capital Economics.
The Bank of England last reduced interest rates in May, cutting them by 0.25 points to 4.25 per cent.
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Keir Starmer had indicated last month that he would reverse the cuts. (Photo: Getty Images)
THE GOVERNMENT will reinstate winter fuel payments to millions of pensioners this year, reversing an earlier decision that had removed the benefit for most recipients in England and Wales. The move comes after months of criticism and political pressure on prime minister Keir Starmer.
After taking office in July, Starmer's Labour government had removed the winter fuel payments for all but the poorest pensioners as part of broader spending cuts.
The government said at the time that the cuts were necessary to address a gap in the public finances created by the previous Conservative administration.
Means-testing remains for wealthier pensioners
On Monday, the government announced it would restore the payments to 9 million pensioners. Only about 2 million people earning above £35,000 will remain excluded from the £200–£300 heating subsidy during the winter months.
The initial decision had faced opposition from dozens of Labour MPs and was seen as a factor in the party’s recent electoral setbacks, including gains made by Nigel Farage’s Reform UK party in local elections. Reform UK also leads in national opinion polls.
Chancellor Rachel Reeves said the decision to exclude wealthier pensioners still stands and defended the initial cuts.
“Because of those decisions, our public finances are now in a better position, which means that this year we're able to pay the winter fuel payment to more pensioners,” she said.
Treasury costings and political fallout
The Treasury said the reversal would cost £1.25 billion, while means-testing the benefit would still result in savings of about £450 million. It added that the move would not lead to permanent additional borrowing and that funding plans would be set out in a budget later this year.
Speaking at a press conference in Wales, Farage claimed credit for the U-turn.
“The Labour government are in absolute state of blind panic, they are not quite sure what to do,” he said. “Reform are leading now much of their agenda.”
Starmer had indicated last month that he would reverse the cuts.
According to the Institute for Fiscal Studies, the earlier policy change had resulted in around 85 per cent of pensioner households losing access to the benefit.