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Political crisis forces Pak PM to withdraw fuel pr
時間:2011-1-12

Political crisis forces Pak PM to withdraw fuel price hike

ISLAMABAD : In a significant move, Pakistan PM on Thursday reverted an earlier decision to hike fuel prices amid climbing political crisis.

He announced to reverse the fuel price hike after a key partner decided to quit the ruling coalition and the main opposition set a 6-day deadline for the withdrawal of the decision.

The key coalition partner Mutahida Qaumi Movement (MQM) or United National Movement decided Sunday to part ways with the government of Prime Minister Gilani, citing an increase in the petroleum prices as one of the main reasons.

The MQM decision had reduced the government parliamentary majority to minority and the prime minister had been under pressure to prove majority in the parliament.

On Tuesday, main opposition party Pakistan Muslim League-N chief Nawaz Sharif also called for the withdrawal of increase in the petroleum prices in six days.

In order to avoid political crisis, Gilani announced the hike withdrawal in the petroleum prices.

Economic experts say that now the government will have to give up to three billion rupees ($35 million) subsidies on fuel, which will also put a burden on budget deficit.

The transporters, who had increased fares, also announced to withdraw hike after the government's decision.

The opposition party of former Prime Minister Nawaz Sharif, welcomed the withdrawal of the petroleum prices.

The government's decision may to some extent ease the tensions it faces but some observers believe that it may be a temporary relief for Gilani

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