Upon arrival, Scholz condemned the Iranian strikes on Israel
The Muttahida Qaumi Movement (MQM) said the decision had been taken because of the government’s fuel prices policy. It means Prime Minister Yusuf Raza Gilani’s administration may now collapse.
‘It has been decided. We will sit on the opposition benches in the National Assembly and the Senate,’ MQM spokesman Wasay Jalil said.
The MQM, which is the dominant political force in the financial capital Karachi, last week withdrew its two ministers from the federal cabinet because of what it said was the government’s failure to improve security.
Gilani said his Pakistan People’s Party (PPP) government would not fall despite the MQM move, one that comes as the South Asian country struggles to improve its fragile economy and contain militancy problems that have kept investors away.
Foreign direct investment fell by 21.5 percent in the first five months of 2010 to $573.3 million because of factors such as militant violence. Although the stock market closed up 28 percent in 2010, partly due to foreign buying, these funds are easier to pull out during troubles and are among the cheapest in the region. Foreign investors would likely start to pull out if the government falls.
Analysts said forming a new coalition would likely be a protracted, delicate process and the more likely scenario could be that a early election, due in 2013, might be forced on the government.
The opposition can now move a no-confidence vote against the prime minister in parliament.
President Asif Ali Zardari’s aides have been trying to win back the Jamiat-e-Ulema-e-Islam (JUI), a small coalition partner, which left the government last month over the sacking of one of its ministers and sat with the opposition.
Pakistan’s government has relied on an $11 billion IMF loan agreed in 2008 to keep the economy afloat. It is under pressure to implement reforms to secure the sixth tranche.
‘With the MQM leaving the coalition, the fragility of the government is exposed and it is highly unlikely that the government will now be able to take the tough decisions required to get the economy back on track,’ said Asad Iqbal of Faysal Asset Management.
The turmoil is likely to raise concerns in Washington that its ally is too politically unstable to contain homegrown Taleban militants, who have been stepping up suicide bombings, and help American efforts to pacify Afghanistan.
An MQM statement said the decision to break with the coalition was taken because of the government’s fuel price policies.
‘Right at the start of the new year the government has raised the prices of petrol and kerosene oil, which is unbearable for the people who are already under pressure from the already high prices,’ said an MQM statement.
‘In such a situation, the MQM considers it unfair with the people of Pakistan to sit in the government.’ The MQM remains in the ruling coalition in the southerly Sindh province.
Upon arrival, Scholz condemned the Iranian strikes on Israel
Police have named the assailant as 40-year-old itinerant man Joel Cauchi
Family expresses condolences to the victims
The airline has already suspended flights to and from Tehran until April 18
All flights at Egyptian airports are according to the usual schedules, except for some flights heading to countries that have closed their airspace, said the govt
Air India and Vistara have announced avoidance of Iranian airspace and are taking longer flight paths for their Europe and US operations
Israel has a multi-layered air defence system that has intercepted thousands of rockets since it first went into operation in 2011
Police said there was no evidence to suggest Joel Cauchi was 'driven by any particular motivation, ideology or otherwise'