Thousands of protesters have taken to the streets in Tbilisi this week in anger as a Russian-style law began its passage through parliament.
Under the bill, non-government groups and media would be targeted if they take over 20% of funding from abroad.
The main ruling party said it was pulling the bill "unconditionally".
Describing itself as a party of government responsible to all members of society, Georgian Dream referred to the need to reduce "confrontation" in society.
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