Pakistan PM bends to opposition demands on economy

— Pakistan’s prime minister says his government will reverse unpopular fuel price hikes that helped spark the break-up of the governing coalition.

Yousuf Raza Gilani told parliament Thursday the government made the decision in response to the outcry from opposition parties and the public.

The government raised fuel prices by as much as 9 percent on New Year’s Eve. Days later, the second-largest member of the ruling coalition cited the price hikes as a reason for joining the opposition.

The defection deprived the governing Pakistan People’s Party of a majority coalition in parliament, plunging the country into political turmoil at a time of severe economic troubles and relentless militant attacks.

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