KARACHI, Sept 27: Prime Minister Yousuf Raza Gilani said on Saturday that removal of subsidies on utilities caused price hike and the “democratic government had to take difficult and ‘undemocratic’ decisions (of passing on the burden to end-users) due to international pressures”.

Mr Gilani said at an Iftar hosted by Sindh Governor Dr Ishratul Ibad Khan that law and order was essential for economic progress.

He called for putting “our house in order” to deal with terrorists and sought support of the business community to eliminate elements out to harm the country.

The prime minister, who had earlier met businessmen at the Governor’s House, asked them to hold discussions with the ministers for finance and commerce and the deputy chairman of Planning Commission and firm up proposals for the government. He assured them to do utmost to address their concerns.

The businessmen mainly focused on the high interest rate and rising cost of energy and other inputs.

He said the government was pursuing a transparent privatisation policy and exploring avenues for galvanising the economy. He said that due to the government’s endeavor ‘Friends of Pakistan’ were also ready to help the country.

He said the law and order situation was precarious due to terrorism and extremism.

He referred to a three-pronged strategy, which included holding of dialogue with those who are willing to lay down arms; addressing the root causes of the problem through proactive development strategy; and removing poverty, unemployment, ignorance and lack of basic necessities.

He, however, made it clear that those who challenged writ of the government would be dealt with very firmly.

He claimed that the government’s policy was winning support of people as they had formed ‘lashkars’ to confront terrorists and extremists in their areas.

The prime minister was confident that with support of local people, the government would succeed in crushing terrorists and extremists who were trying to harm the country and democratic dispensation.

Mr Gilani said all deposed judges of the superior judiciary would be restored in accordance with the Constitution.

Chief Minister Syed Qaim Ali Shah, Sindh Assembly Speaker Nisar Khuhro and a number of federal and provincial ministers attended the function.