The New Nation - Internet Edition

Reuters, Islamabad

Pakistan will hold a presidential election on Sept. 6 to vote in a replacement for Pervez Musharraf, who resigned this week, the Election Commission said on Friday.

Under Pakistan's constitution a new president is elected by members of the country's four provincial assemblies and the national parliament within 30 days of the post becoming vacant.

Meanwhile, Pakistan's governing coalition was due to hold make-or-break talks on Friday to save the alliance between the country's two main parties, as concern grew that squabbling was keeping them from tackling critical problems.

A day after militants carried out their most deadly strike against the military, killing at least 59 people in suicide blasts outside the country's main defence industry complex, there was no sign of a compromise on a dispute over the judiciary.

Investors and allies hoped the resignation of close U.S. friend Pervez Musharraf as president on Monday would end wrangling that has distracted attention from the nuclear-armed country's deteriorating economy and militant violence. But the party of assassinated former prime minister Benazir Bhutto and its old rival and main coalition partner, the party of former prime minister Nawaz Sharif, have failed to agree on the restoration of judges Musharraf purged last year. Frustration with the deadlock is growing.

"It is truly tragic that Pakistan has fallen repeatedly into the hands of leaders unable to put their own interests on the backburner and place those of the country at the forefront," the News newspaper said in an editorial.

Pakistani stocks and the rupee strengthened when Musharraf stepped down but have since weakened as a showdown loomed over the judges. The rupee set a new low of between 76.90 and 77.10 in early trade on Friday while stocks were about 2 percent lower. Pakistan's stock market, which rose for six consecutive years to 2007, and was one of the best-performing markets in Asia in that period, has fallen about 29 percent this year.

Sharif's party threatens to quit the coalition unless a decision is taken on Friday to restore judges dismissed by Musharraf last year.

Sharif has already withdrawn his ministers from the cabinet over the dispute and the party's move to the opposition benches in parliament would not force an election, analysts say.