Islamabad , Pakistan ( CNN ) -- The Pakistani government has reversed a recent hike in fuel prices , an effort that could help shore up the country 's crumbling governing coalition . Prime Minister Yousuf Raza Gilani announced the move on Thursday in the National Assembly . It comes days after the Muttahida Qaumi Movement quit the government over fuel price increases and other complaints -- a move that cost Gilani 's Pakistan People 's Party its majority in the assembly . Gilani called for the establishment of a team that would devise a strategy to combat fluctuation in world petroleum prices and avoid harsh measures , such as the fuel price increase . The government crisis comes at a turbulent time . The U.S. military has been counting on the government to do a robust job of taking on militants in the Pakistani tribal region , but the loss of support is putting Gilani 's government on shaky ground . The MQM is one of the largest and most liberal parties in Pakistan , with its stronghold in the southern city of Karachi . Its exit follows December 's withdrawal of the Jamiat Ulema-e-Islam-Fazal ur Rehman , a leading religious party . Muhammad Anwar , a senior coordinator for the MQM , told CNN that the last straw for the party was the fuel price increases that took effect Saturday . Pakistan 's government had raised gasoline prices by 9.2 % and increased kerosene prices by nearly 6 % , blaming higher crude oil costs for the move . Anwar also said the government had failed to crack down on `` rampant '' corruption and maintain law and order -- particularly in Karachi and the surrounding southern province of Sindh . Businessmen in Karachi `` are virtually hostage '' to extortion and kidnapping rings , he said . MQM leader Faisal Sabzwari said Sunday that the PPP-led government also has imposed unfair taxes on the poor and allowed an energy crisis to fester . The Pakistan Muslim League , another political party , said Wednesday said it will not support the government in its quest to regain a majority . Gilani said recently the ruling PPP would be able to function without a majority in the National Assembly .
Another party quit the coalition over fuel price hikes and other issues . Government 's resignation gave the prime minister 's party its majority in the assembly . Another party withdrew in December . Prime minister wants to develop a strategy to combat price rise .