East Timor MPs have agreed to scrap plans to provide lifetime pension allowances for themselves, bowing to pressure from thousands of students who have staged demonstrations against the plans since Monday.

East Timor, commonly known as Timor-Leste, has a population of 1.3 million people living on an island slightly bigger than Qatar. It is one of Southeast Asia's poorest nations and is dependent on dwindling reserves of oil and gas.

Earlier, more than 1000 students protested for a third day in front of East Timor's parliamentary building in the capital Dili, demanding the government cancel plans to provide lifetime pension allowances for MPs.

Parties in the East Timor parliament said they would abolish the plan as an understanding they had struck with the students.

MPs had previously a

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