WASHINGTON: US Secretary of State Hillary Clinton said Thursday it was a “mistake” for Pakistan to reverse controversial fuel price hikes as it undermined its efforts to bolster its ailing economy.

“We believe that the government of Pakistan must reform its economic laws and regulations, including those that affect fuel and its cost,” Clinton told reporters.

“We have made it clear... that we think it is a mistake to reverse the progress that was being made to provide a stronger economic base for Pakistan and we will continue to express that opinion,” the chief US diplomat said.

She said she had made the point when she met Pakistan's ambassador to Washington, Hussain Haqqani, at the State Department on Tuesday.

Mark Toner, a State Department spokesman, had earlier signaled US opposition to the fuel price hikes.

“What we've said all along is that the reforms that the government of Pakistan is undertaking are difficult, but they're important for its long-term economic stability,” Toner told reporters.

“Our position is that... Pakistan needs to undertake difficult economic reforms that are going to require some pain, frankly, politically,” Toner said.

The IMF had also criticised the rollback.  “They’re inefficient and untargeted so that the bulk of the benefit from the energy subsidy goes to higher income individuals and large companies,” spokeswoman Caroline Atkinson said from Washington when asked whether reinstating the subsidies would derail the loan.

“We continue to work with Pakistan to see if we can reach agreement on measures that the government can put in place to put its economy on a sounder footing,” she said.