Key Party Rejoins Pakistani Coalition Govt

Pakistan Government Returns to Narrow Majority

Less than a week after formally moving into the opposition, the Muttahida Qaumi Movement (MQM) did a 180 today, announcing that they are rejoining the government and putting an end to the brief attempt at minority rule.

The move was chiefly a function of the government backing off its plan to abandon a number of planned economic reforms, which included reducing the massive subsidies on fuel, and is rumored to have also included some unspecified political concessions.

The reverse on the subsidies cut was immediately slammed by the IMF, which responded with a demand that the government re-reverse its position and cut the subsidies, warning that the move is crippling the nation’s economy.

The Pakistani government’s budget is a combination of massive subsidies and massive military spending. Cutting the subsidies seems to be too politically damaging domestically, and cutting the military would spark massive international rebukes, leaving the government stuck in the position of out-of-control spending.

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Author: Jason Ditz

Jason Ditz is news editor of Antiwar.com.