Yemen's president has dismissed the cabinet and partially reversed an earlier decision to lift fuel subsidies in a bid to put an end to anti-government protests across the country, Yemeni officials said.
"Abed Rabbo Mansour Hadi would appoint a new prime minister within a week," three Yemeni officials said on condition of anonymity, AP reported.
"Hadi made his decision on Tuesday during a meeting with the now outgoing government and representatives from political parties," they added.
The decision comes a day after the Houthi leader, Abdel-Malek al-Houthi, called for a mass protest against the government.
Houthi accused Basindawa's government of incompetence and making empty promises, urging members of the army and security forces to join the planned protests and not become a tool in the hand of the governemnt.
Yemen’s Houthi movement draws its name from the tribe of its founding leader Hussein Badreddin al-Houthi.
The Houthi movement played a key role in the popular revolution that forced former dictator Ali Abdullah Saleh to step down.
Saleh, who ruled Yemen for 33 years, stepped down in February 2012 under a US-backed power transfer deal in return for immunity, after a year of mass street demonstrations demanding his ouster.