ISLAMABAD President Asif Ali Zardari has given fresh assurance to Muttahida Qaumi Movement leadership that all their genuine concerns regarding the smooth functioning of coalition government in Sindh and Federal Budget 2010-11 would be fully addressed. President Asif Ali Zardari, who is also PPP co-chairman, also gave assurance to MQM central leadership that the current status of Hyderabad would be kept intact and the plan of restoration of old Hyderabad District would be dropped. Similarly, a number of their proposals were incorporated in the Finance Bill 2010-11, and their concerns of VAT were also fully addressed. Sources aware of the developments taking place on this front informed TheNation that President Zardari had mended the severe cracks in the PPP-MQM alliance and saved things from total collapse for the time being. However, the sources in MQM informed that a number of their demands regarding the working of coalition government in Sindh, fate of local bodies elections and other issues related to the port city of Karachi were yet to be addressed as per their satisfaction. The sources further informed that President Zardari had held out assurance to the central leadership of MQM that all the contentious issues between the two parties would be taken up by the Core Committee comprising the leadership of both the parties and would come up with its solution at the earliest. Sources in MQM further informed that they had also taken up the issue of undue delay in resolution of the main issues and the Core Committee was virtually made redundant entity, as no significant achievement was made by the committee since its constitution. It was agreed between the two sides that Core Committee would be made active and vibrant entity and it should be given certain time limit to come up with solutions to the key problems facing the province, particularly Karachi. Sources in MQM confirm that President Zardari had assured them that the status of Hyderabad would not be changed and the public aspirations would be respected. A couple of months back Prime Minister Syed Yousuf Raza Gilani during his visit to Hyderabad had announced that the old district of Hyderabad would be restored. MQM had strongly retaliated and termed it violation of the coalition agreement as it was decided between the two sides that all the decisions regarding the functioning of Sindh Government would be made though consultation. Later, the things between the two sides further derailed over the wide differences between the two sides on fate of Local Bodies system and the handling of law and order situation in Karachi. It was due to the growing differences between the two sides that the sitting Federal Ministers came out criticising the finance bill presented by the coalition government and went to the extend that if their proposals would not be incorporated in the finance bill they could even think of parting ways with the government. Sensing the gravity of the situation President Asif Ali Zardari approached the MQM Quaid Altaf Hussain in London and also held series of meetings with Governor Ishratul Ibad and the MQM Rabita Committee members to narrow down differences between the two sides. Sources in Pakistan Peoples Party said that President Zardari had given assurance to MQM that government would not change the present status of Hyderabad as announced by Prime Minister Syed Yusuf Raza Gilani while the rest of the demands of the MQM would be taken up in the Core Committee comprising the leaders of both the parties and it would be given certain time-limit for thrashing out differences between the two sides on main issues of discord.