NYT : Musharraf Spokesman Says No Deal Yet

Musharraf Spokesman Says No Deal Yet

By REUTERS | Published: August 30, 2007

ISLAMABAD, Aug 30 (Reuters) - Pakistani President Pervez Musharraf has yet to decide whether to step down as army chief and try to become a civilian president, a spokesman for the president said on Thursday.

Exiled former prime minister Benazir Bhutto said on Wednesday she had almost sealed a power-sharing deal with Musharraf that would see him quit as army chief, possibly before he seeks re-election next month.

With his term coming to an end and his popularity plummeting, army chief Musharraf has turned to Bhutto for help to shore up his position, and his aides are meeting with the two-time prime minister in London.

But Bhutto has been insisting an agreement would hinge on Musharraf stepping down as chief of the army, which has ruled for more than half Pakistan's history since independence in 1947.

The president's spokesman, Rashid Qureshi, said talks with Bhutto were going on, but no final agreement had been reached.

"Dialogue is continuing. There is no decision that I'm aware of," he said.

Musharraf aims to get re-elected president for another five years between mid-September and mid-October, before his term as army chief expires at the end of the year. Parliamentary elections are due around the turn of the year.

Railways Minister Sheikh Rashid Ahmed, a close ally to Musharraf, told a news conference in Islamabad on Wednesday that the matter of Musharraf's army post had been settled and the president would make an announcement soon.

But Qureshi said no decision had been made.

"That's an issue the president has been speaking about and that's an issue he will decide," he said.

"A kind of impression is being given that a decision has been done but no such thing has happened so far. Not to my knowledge."

Western governments are closely following the turbulence in Pakistan, a nuclear-armed state whose support is critical to fighting al Qaeda and defeating the Taliban in Afghanistan.

Pakistan's main stock index, which has been hurt by political worry in recent weeks, ended 1.16 percent up on hope for an agreeement, though dealers said the market was not jumping to conclusions.

"The market is waiting for a clearer picture on the political front but the index was up today, which indicates that it will take a power-sharing deal positively," said Shuja Rizvi, director of broking operations at Capital One (NYSE:COF) Equities.

"NO ULTIMATUM"

Bhutto is due to meet her party leaders in London on Friday and wants terms finalised by then, so her party can decide whether it will be for or against Musharraf.

But Qureshi dismissed reports Musharraf was facing an ultimatum from Bhutto, saying the president never worked under pressure or to ultimatums.

Under a deal, Bhutto would expect to become prime minister again, though that would require a constitutional amendment to remove a bar on prime ministers serving more than two terms.

Bhutto, who has corruption charges hanging over her, also wants immunity for civilian officials who served in the late 1980s and 1990s. She also wants the president stripped of powers to dismiss governments.

The Supreme Court last week added to pressure on Musharraf to agree terms with Bhutto, by ruling that Nawaz Sharif, the prime minister Musharraf overthrew in 1999, can return from exile.

Sharif, who is also in London, is due to announce the date of his return later on Thursday.

(Additional reporting by Faisal Aziz in Karachi)