Pakistan cabinet victim of the cuts

Pakistan prime minister Yousuf Raza Gilani dissolved his 50-plus-member cabinet yesterday, in order to replace it with a smaller group in response to demands for greater financial savings in the economically struggling country.

The dissolution of the cabinet, which included a mass resignation by ministers, is a concession to opposition leaders. The government seeks their support to pass broad economic reforms insisted on by international lenders whose billions are keeping Pakistan afloat.

"The prime minister has dissolved the cabinet after receiving resignations from the ministers, and it has been done to further reduce the size of the cabinet," said a spokeswoman for the ruling Pakistan People's Party. She added that the move aims for "fiscal austerity".

Pakistan's economy relies heavily on loans from the International Monetary Fund and the government has struggled to raise revenues.

But the ruling party's efforts to impose new economic policies have been rebuffed by the opposition and even some allies. Analysts said shrinking the cabinet could help gain their support for economic reforms.