Pakistan's MQM to rejoin government coalition-MQM official

KARACHI Fri Jan 7, 2011 6:45am EST

KARACHI Jan 7 (Reuters) - Pakistan's Muttahida Qaumi Movement (MQM) will rejoin the ruling coalition of President Asif Ali Zardari's Pakistan People's Party (PPP), restoring the government's parliamentary majority, an MQM official said on Friday.

The MQM, the second largest party in the ruling coalition, defected to the opposition on Jan. 2, depriving the government, a strategic U.S. ally, of its majority and deepening Pakistan's political crisis.

The MQM, which dominates the country's financial capital Karachi, said at the time the government's fuel prices policy, among other issues, was the reason for its defection.

On Thursday, the government reversed the unpopular fuel price rise in a concession to its partner. (Reporting by Faisal Aziz; Editing by Chris Allbritton) (For more Reuters coverage of Pakistan, see: here) (If you have a query or comment about this story, send an e-mail to news.feedback.asia@thomsonreuters.com) (Created by Robert Birsel)