PAKISTAN:NEGOTIATIONS BETWEEN the Pakistani government and President Pervez Musharraf, aimed at securing his exit from office before impeachment, are stalling with only days left before proceedings begin in parliament.
President Musharraf has long been accustomed to firm political control over Pakistan.
As the country's newly elected politicians increasingly clamour for the 64-year-old former commando and retired army chief to step down, Mr Musharraf is refusing to accept that he may have entered the dying days of his rule.
Yesterday the president reacted strongly to reports of his imminent resignation. In a written statement, a spokesman called them "totally baseless and malicious", adding that "such unsubstantiated reports were creating uncertainty and negatively impacting the economy of the country".
Political observers believe that Mr Musharraf's likely exit strategy is plagued with difficulties, especially as Nawaz Sharif - the former prime minister and a key partner in the current ruling coalition - is eager to press for his prosecution.
Senior government officials said that a prospective deal, which had seemed likely on Thursday, fell through because of Mr Sharif's opposition to any compromise that would block the impeachment of his once-trusted colleague.
Government officials said last night that a senior Saudi intelligence official had arrived in Pakistan, apparently to help negotiate a settlement.
The president's eroding political position prompted fresh rumours yesterday that he may be pushed into taking extreme steps, such as either calling for a military takeover or dissolving parliament and imposing emergency rule, as he did in November 2007.
While the constitution gives Mr Musharraf the power to do one or the other, he has few reasons to be reassured about his political future.
Apparently, senior generals, led by Gen Ashfaq Kiyani, President Musharraf's hand-picked army chief of staff, have quietly told him that they are in no position to support him in the face of a growing political onslaught.
Senior western diplomats add that Mr Musharraf would struggle to justify dissolving parliament after his opponents scored a landslide victory in February.
Even if he were to make that move, his case would probably be defeated in subsequent Supreme Court challenges, "raising the possibility of a rapid reversal of President Musharraf's move", according to one diplomat.
However, fears remain of a possible military backlash if their former leader is prosecuted.
The ultimate crunch may come from worsening economic indicators, especially if Pakistan is put through a long-lasting political deadlock caused by President Musharraf's refusal to step down.
- (Financial Times service)