Sectarian tensions and a row over public sector pay have prompted a political crisis in Kuwait, Opec's fourth-largest oil producing country.

The Middle Eastern state saw its cabinet step down en masse yesterday, raising the likelihood of snap elections following the dissolution of parliament by head of state Sheikh Sabar.

"It is regrettable that we have been confronted with obstructive positions and practices," defence minister Sheikh Jaber Mubarak al-Sabah wrote in his resignation letter, seen by the AFP news agency.

"Our political scene has lately witnessed events that undermine our national unity, in addition to confrontations, crises and violations of parliamentary norms."

The biggest argument between the government and parliament, which holds unusually strong powers for the region, comes over public sector pay.

Last month the government approved a KD120 (£223) pay rise for Kuwaiti employees, but parliament remains dissatisfied and wants an additional KD50 (£93).

That dispute follows a recent upsurge in sectarian tensions, which local media attributes to a Shia minority rally mourning the loss of Lebanese militant group Hizbullah's military wing leader Imad Mughniyah.

Sheikh Sabah must now decide whether to ask the prime minister to form a new government or dissolve parliament and hold new elections.

Commentators believe the latter is the most likely outcome of the current crisis.

Former oil minister Ali al-Baghli told the Reuters news agency: "The government was not decisive enough and lacked a clear agenda and MPs focused on popular demands.

"There is hope that a new assembly will change things but I am not too optimistic."
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