The New Nation - Internet Edition

Reuters, Islamabad

Leaders of Pakistan's civilian coalition pondered over the fate of President Pervez Musharraf on Thursday as speculation grew that the U.S. ally might be stripped of his powers and possibly be impeached.

Such a move would almost certainly plunge the nuclear-armed Muslim nation into a new bout of political instability unless the former army chief, who came to power in a coup nine years ago, decided to go quietly.

Musharraf, due to go to China early on Thursday to attend opening ceremonies for the Beijing Olympics, delayed his departure because of the uncertainty hanging over him. He has already put off the visit by a day.

Officials said Musharraf might either depart in the evening or postpone the visit.

He lost parliamentary support after an election last February that resulted in a civilian coalition government led by the party of the late Benazir Bhutto, a two-time prime minister who was assassinated while campaigning last December.

Asif Ali Zardari, Bhutto's widower and head of the ruling alliance, met Nawaz Sharif, leader of the second largest party, to resolve differences over the issues of Musharraf's impeachment and the restoration of Supreme Court judges who were dismissed by Musharraf last November during a period of emergency rule.

A spokesman for Sharif's party said there had been "some interruption" over the restoration of deposed judges but hoped that it would be resolved in the talks.

Leaders of the coalition parties are expected to give a news conference later in the evening.

Musharraf has become increasingly unpopular at home though the United States would be reluctant to see its old ally impeached as a constitutional crisis could distract Pakistan from the fight against an al Qaeda network that has regrouped in tribal areas close to the Afghan border.

The parliamentarians from the tribal areas said they would fully support an impeachment move against Musharraf. "The people of the tribal areas will be very happy if President Musharraf goes," Noor-ul-Haq Qadri, an MP from the tribal belt told Reuters. "We would like him to step down on his own but if the coalition leaders decided to impeach him, then we will fully support them.

The uncertainty has taken a toll on Pakistani markets, with the main share index at its weakest in nearly 23 months and the rupee headed back towards all-time lows posted in early July.

Pakistan is suffering inflation at a three-decade high, frequent power cuts, food and fuel shortages, and rising militancy across the northwest.

Musharraf has previously said he would resign rather than face impeachment proceedings but Pakistani political circles are awash with speculation that he could dismiss parliament, even though he has said he would not.

How the army responds to the prospect of a humiliating exit for its former chief will be crucial.

Army commanders met in the garrison city of Rawalpindi, close to Islamabad, on Thursday but a military official said "it was a routine meeting."

"The meeting will continue on Friday in which they will discuss issues relating to promotions of brigadiers and other senior officers," the official said on condition of anonymity.

Last November, Musharraf passed command of the army to General Ashfaq Kayani, who had previously headed the Inter-Services Intelligence (ISI) agency.

Kayani has tried to withdraw the army from politics but he maintained close ties with the president.