Good afternoon,

Today’s news: Globally, Thailand-Cambodia border clashes, China’s trade surplus, and Gaza ceasefire phase 2. Locally, IMF board to review funding request, PTCL clears Telenor buyout, and Sindh rally turns violent.

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Around The World

No good deal. Thailand launched airstrikes against Cambodia on Monday as a new wave of fighting erupted between the Southeast Asian neighbours, leaving a peace plan presided over by US President Trump months ago in danger of collapse. Both sides have accused each other of starting the violence, which is the most serious confrontation between the two countries since the ceasefire in July. The two nations have repeatedly fought brief border skirmishes in recent decades, with a deadly five-day conflict in July leaving dozens dead and displacing about 200,000 on both sides of the frontier.

The latest round of clashes has killed at least one Thai soldier and four Cambodian civilians, with the Thai army saying that more than 50,000 people have left areas near the border for shelters, while Cambodia’s Information Minister Neth Pheaktra said that tens of thousands of residents had been displaced from several villages near the border.

Big bucks. China’s exports returned to growth in November following an unexpected contraction the month before, although shipments to the US dropped nearly 29% from a year earlier in an eighth straight month of double-digit declines. Overall exports from China were 5.9% higher than last year in November in dollar terms, at $330.3 billion, which was an improvement from a 1.1% contraction in October. 

Underscoring a widening gap between overall exports and imports, the customs data showed that China’s trade surplus for the first 11 months surpassed the $1 trillion mark, at nearly $1.08 trillion, a record high for any single year, and more than the $992 billion surplus in all of 2024. While exports from China to the U.S. have fallen for most of the year, shipments have surged to other destinations, including Southeast Asia, Latin America, Africa, and the European Union.

Phase 2. Hamas is expected to hand over the body of the last Israeli captive held in Gaza in the coming days and has commented that it would be open to discussing “freezing” its weapons to facilitate entering the second phase of the ceasefire. Meanwhile, Israeli Prime Minister Netanyahu said on Sunday that the second phase would be challenging to achieve but that it could begin as soon as this month. 

The US-brokered ceasefire deal requires Hamas to give up its arms under the supervision of independent monitors as part of the demilitarization of Gaza. Disarmament is a key part of the second phase of the 20-point ceasefire agreement. However, Israel has been attacking Gaza throughout the first phase, killing at least 360 Palestinians, and still restricts the entry of aid, with quantities allowed in far below what was agreed.

Pakistan

Hope wired. The IMF Executive Board is scheduled to meet in Washington today to review Pakistan’s request for a $1.2 billion disbursement under its $7 billion Extended Fund Facility and $1.4 billion Resilience and Sustainability Facility, following a Staff-Level Agreement reached in October following policy discussions held in Karachi, Islamabad, and Washington. The funding is seen as vital for Pakistan’s recovery from a prolonged economic crisis marked by depleted reserves, soaring inflation, and a near-default in 2023.  

However, recent improvements in the current account and inflation have brought some stability. Economists say the disbursement would strengthen Pakistan’s external position and enable further financial inflows, as the country continues to depend heavily on multilateral and bilateral support to stabilize its economy.

Smooth operator. The Pakistan Telecommunication Authority (PTA)  has issued a no objection certificate to PTCL for its $400 million acquisition of Telenor Pakistan, clearing the way for the merger of Ufone and Telenor to form the country’s second-largest mobile operator. The decision comes amid rising costs and regulatory challenges in the telecom sector, with the PTA saying it evaluated market competition and consumer impact before approval, and will monitor the transition to ensure service quality and compliance. PTCL expects the acquisition to boost network performance and sector efficiency, while reshaping a pressured telecom market currently split among four major operators.

For the culture. An FIR under terrorism and multiple criminal charges has been registered after a Sindh Culture Day rally in Karachi turned violent on Sunday, leading to clashes between participants and police near the FTC flyover on Shahrah-e-Faisal. Police used tear gas to stop rally-goers from entering the Red Zone under Section 144 restrictions, while a case was filed against 12 named and 300–400 unidentified individuals. According to the FIR, protesters blocked the road, pelted stones, opened fire, damaged vehicles, and chanted alleged anti-state slogans, injuring five policemen. 

What Else Is Happening?

🏎️McLaren driver Lando Norris clinched his first Formula 1 title at the season-ending Abu Dhabi Grand Prix on Sunday, becoming the first British champion since Lewis Hamilton in 2020, and he also denied Verstappen a fifth straight title.

💦A water leak at the Egyptian department of the Louvre museum in Paris has damaged 300-400 works, mostly books, just weeks after thieves stole priceless French crown jewels from the museum in broad daylight.