January 7, 2011 9:24 AM

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Pak PM cancels fuel price increase

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.

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