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Pakistani Government To Rescind Fuel Price Increase

Prime Minister Yousaf Raza Gilani (center) faced a cabinet crisis over the issue.
Pakistani Prime Minister Yousaf Raza Gilani has told the National Assembly that the government will reverse an unpopular hike in the price of gasoline that contributed to the loss of his parliamentary majority.

Gilani said the entire political leadership and parliamentary leaders agreed to rescind the 9 percent increase in gas prices that came into effect on January 1.

Gilani's government lost its majority after the Muttahida Qaumi Movement defected because of the decision to raise fuel prices to "unbearable" levels.

compiled from agency reports