Islamabad, January 07: Pakistan’s government has reversed its decision to increase fuel prices in what appears to be a move to ease political tensions in the country.
Pakistani Prime Minister Yousuf Reza Gilani announced the decision in the National Assembly in Islamabad on Thursday.
“In respect of the national political leadership, and this house, and the whole nation, I restore the old petroleum prices,” Gilani said
“There was a consensus among the entire political leadership and parliamentary leaders that petroleum prices of December 31 should be restored,” he added.
The nine-percent increase had led Gilani’s key coalition partner Muttahida Qaumi Movement (MQM) to join the opposition.
MQM had already been at odds with Gilani over what it called government’s poor performance.
Gilani’s Pakistan People’s Party (PPP) has now lost its majority in the parliament.
MQM says it appreciates the move but will not rejoin the government.
The developments also come after main opposition Leader Nawaz Sharif had given the Islamabad government three days to agree to key reforms or face collapse.
Pakistan’s Muslim League-N chief has threatened to join other opposition parties.
However, Pakistan Muslim League-Q (PML-Q) leadership has recently promised to extend their support to the government.
The PML-Q has been considered as staunch supporters of the presidency of former general Pervez Musharraf.
Amid the lingering political crisis, the PPP-led government in Islamabad is struggling with a growing militancy and economic crisis in the country.
Moreover, Pakistan’s economic outlook has deteriorated sharply as a result of the recent floods which affected more than 20 million people.
———Agencies