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Saturday, January 8, 2011

Pakistani PM woos partner in coalition with reversal of price rises (Reuters)

KARACHI (Reuters) - the Prime Minister of Pakistan Yusuf Raza Gilani will try to woo back a vital coalition partner to save his Government fragile Friday after reversing an increase in fuel prices, a move criticized by the IMF and ally of the United States.

Gilani will hold talks with the leaders of the Muttahida Quami Movement (MQM), powerbase is in the South of the shopping centre of Karachi, who defected Sunday about 9% of fuel price increases.

MQM leader Faisal Subzwari told Reuters Thursday that his party congratulates notice change the Government, but that it did not intend to join the Government.

Official main part, however, said that MQM will keep an "open mind" in Karachi talks.

Talks can help defuse the political tensions in Pakistan, where discontent grows on inflation, rising suicide attacks carried out by the Taliban militant, electricity, poverty and unemployment.

But the reduction in fuel prices also criticisms of ally Washington and financial lifeline to Pakistan strategic Monetary Fund International.

The IMF, who rescued the economy of Pakistan with a loan of 11 billion in November 2008, wants more budget discipline of the Government through measures such as implementing a new sales tax on painful.

It strongly criticized the rollback Thursday and that money could be better spent on social programs.

Secretary of State Hillary Clinton, American said she warned Ambassador of Pakistan that inversion would return progress being made to provide a stronger for Pakistan economic base a nuclear-armed South Asian countries.

Representatives of the Party (PPP) in power said popular Pakistan reversal of rising prices, with assurances on other applications, would probably suffice to get back aboard MQM.

"We are very optimistic." We believe in the policy of reconciliation, and we have determined a lot of problems with them (MQM), said Sharmila Farooqi, a high-ranking official PPP in the province of Sindh, Karachi is the capital.

Jamiat - e - Ulema - e - Islam (Jul), a small religious, also left the coalition party the month last Gilani dismissal of one of his ministers.

The possibility of a vote of no confidence appears to have declined, mainly because the opposition is too divided. But language of Gilani's announcement of inversion in fuel prices suggested that Prime Minister feels very vulnerable.

"All political leaders" have agreed to overthrow, he said.

(Editing by Nick Macfie)

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