SATURDAY JANUARY 08: MQM rejoins government: 'we have deferred RGST', says Gilani

KARACHI: Prime Minister Syed Yusuf Raza Gilani said on Friday his government would defer a key tax reform in a move sure to anger the United States and the International Monetary Fund.
"We have deferred (the reformed general sales tax)," Prime Minister Yusuf Raza Gilani said in Karachi on Friday after a meeting with officials from the Muttahida Qaumi Movement (MQM), its major coalition partner which just announced it would rejoin after defecting to the opposition on January 2 "We will not go forward until consensus is evolved," Gilani said.
Our staff reporter Ahmed Malik adds: Following a crucial meeting with Prime Minister Syed Yousuf Raza Gilani, the Muttahida Qaumi Movement (MQM) on Friday announced that it had decided to rejoin the government and sit on treasury benches in the National Assembly and Senate. However, the party would not re-join the federal cabinet.
The Prime Minister arrived at the MQM headquarters "Nine Zero" and held a meeting with MQM Rabita Committee members and discussed with them the prevailing political situation in the country. The Prime Minister also talked to MQM leader Altaf Hussain on telephone.
Sindh Governor Dr Ishratul Ibad Khan, Chief Minister Syed Qaim Ali Shah and Interior Minister Rehman Malik were also present. The prime minister was welcomed by the MQM leaders including Babar Khan Ghouri, Raza Haroon, Haider Abbas Rizvi, Nasreen Jalil, Mustafa Kamal, Wasy Jalil and other Rabita Committee members.
Addressing a joint press conference after the meeting, the MQM leader Raza Haroon announced that MQM had decided to sit on treasury benches, however his party would not rejoin the federal cabinet. He said the decision was taken in the greater national interest as the country was passing through a very critical phase. He said MQM was ready to tender any kind of sacrifice in the larger interest of country.
The Prime Minister thanked the MQM leadership for a very warm welcome at Nine Zero and assured them that the government would take on board all the coalition partners, including MQM, on all issues both at federal and provincial levels. Gilani said the ruling Pakistan People's Party had good relations with MQM. He said the government had reversed its decision regarding increase in POL prices.
He said it was his first visit to the MQM headquarters Nine Zero and he thanked the MQM leadership for a very warm welcome. Gilani also announced that he would meet Altaf Hussain very soon. After the announcement of MQM to sit on the treasury benches in the National Assembly and Senate, the Prime Minister Yousuf Raza Gilani has won back majority in the parliament. MQM, having 25 seats in the National Assembly, is a very important coalition partner of the ruling PPP.