Bhutto agrees draft accord

MIDDLE EAST: Pakistani opposition leader Benazir Bhutto is expected to seal a "reconciliation agreement" with President Pervez…

MIDDLE EAST:Pakistani opposition leader Benazir Bhutto is expected to seal a "reconciliation agreement" with President Pervez Musharraf today that analysts believe could lead to powersharing within months.

Although on the verge of gaining an ally, Mr Musharraf was uncertain if a presidential election will go ahead in parliament and provincial assemblies on Saturday, as the supreme court is hearing new challenges to him standing while army chief.

The court is expected to rule today whether to order the postponement of a vote that Mr Musharraf, who came to power in a military coup eight years ago, looks sure to win.

The fate of Mr Musharraf, a staunch US ally, and nuclear-armed Pakistan is being closely watched, especially by western nations that have troops in Afghanistan and feel threatened by al-Qaeda militants hiding on the Pakistani-Afghan border.

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The reconciliation agreement will erase corruption charges against Ms Bhutto and other civilian leaders, paving the way for her return on October 18th from more than eight years of self-exile to lead her party in a general election due by mid-January.

A senior official of her Pakistan People's Party (PPP) said Ms Bhutto (54) had approved a final draft of the pact late yesterday.

"Benazir Bhutto has accepted the draft, but that does not mean a conclusive agreement has been reached," Senator Farooq Naik told Dawn Television.

Final agreement hinged on the central government formally promulgating the pact in the form of a presidential ordinance, he said. That was expected later today.

The ordinance is designed to address a key Bhutto demand by removing the threat of prosecution against her and other former politicians and officials.

"It is an across-the-board Bill for all political parties," Ms Bhutto said in London earlier.

"We expect there will be no obstacle in the path of my return," she said.

Mr Musharraf's coalition is expected to fare badly because of anger over rising prices, mounting insecurity and resentment over military rule and an alliance with the US.

The US has quietly encouraged Mr Musharraf and Ms Bhutto to work together.

Asked about the talks with Ms Bhutto, Mr Musharraf said the country needed reconciliation to deal with the biggest challenge it faced - terrorism and extremism.

"In the process of national reconciliation, the People's Party and she have a role to play," he said on television. Asked if Ms Bhutto could be an ally, he said: "Possibly."

Analysts were in no doubt the proposed reconciliation accord was a precursor to post-election powersharing with Ms Bhutto.

- (Reuters)