Pakistan Prime Minister Yusuf Reza Gilani has cancelled an unpopular rise in fuel prices in an attempt to prevent his government from collapsing. A week ago, the price of fuel increased by upto 9 per cent, but Mr. Gilani has now restored prices to their former levels. The United States called this a mistake and the International Monetary Fund also expressed its doubts over the move. On Sunday, Mr. Gilani's coalition government lost its Parliamentary majority when one of its key partners resigned. Meanwhile, US Secretary of State Hillary Clinton has said the Pakistan government's decision to reverse its recent increase in petroleum prices was a mistake and amounted to going back on economic reform. Speaking to media in Washington, Clinton said Pakistan needs to undertake necessary economic reforms for the overall health of the country's economy.Clinton was responding to questions about the rollback of gas price hike in Pakistan, thus endangering its ability to continue to receive funds under the International Monetary Fund's 11 billion dollars loan programme.
News On AIR | January 7, 2011 11:24 AM
Pak PM cancels fuel price increase