Musharraf 'keeping options open'

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Pakistan's government is keeping all options open after exiled former Prime Minister Nawaz Sharif announced plans to return next month, a minister says.

Mr Sharif has said he will go back on 10 September to challenge the embattled President, General Pervez Musharraf.

Another former Prime Minister, Benazir Bhutto, is demanding a response before the weekend to her terms for a power-sharing deal with Gen Musharraf.

Gen Musharraf is seeking re-election by parliament before its term expires.

On Thursday, the US reminded Gen Musharraf of his commitment to resign his army position before contesting elections.

"We expect him to honour that commitment," said a US spokesman.

Legal setback

"The government is keeping all options open on Nawaz Sharif's return," Information Minister Mohammad Ali Durrani told the BBC .

"If he comes back, we will make a strategy."

MUSHARRAF UNDER PRESSURE 9 March: Musharraf suspends chief justice for "abuse of power". Lawyers protest April: Protests grow, amid clashes with police12 May: 34 people die as rival political groups clash in Karachi11 July: 102 people die when army storms radical Red Mosque in IslamabadJuly-Aug: Sharp rise in suicide attacks by pro-Taleban militants 20 July: Supreme Court reinstates chief justice9 Aug: Musharraf rejects emergency rule23 Aug: Supreme Court says exiled ex-PM Nawaz Sharif can return <a class="" href="/1/hi/world/south_asia/6960670.stm">How 1999 coup unfolded</a> <a class="" href="/1/hi/world/south_asia/6959782.stm">Profile: Nawaz Sharif</a> <a class="" href="/1/hi/world/south_asia/6653475.stm">Q&A: Political crisis</a>

Mr Sharif - who served two terms but was deposed by Gen Musharraf in 1999 - announced his return a week after Pakistan's top court defied the government and ruled that he a legal right to go back.

Observers say Mr Sharif could still face jail if he returns.

Mr Sharif said he planned to "start a decisive struggle against dictatorship", adding that Gen Musharraf should step down from the presidency and from his army post.

He also said it would be "unfortunate" if Ms Bhutto made a deal with Gen Musharraf.

"I disagree with Ms Bhutto's current policy of shaking hands with a dictator," he said.

Sticking points

Pakistani newspapers say talks over a possible power-sharing deal between Mr Musharraf and Ms Bhutto have stalled.

She earlier said she was close to reaching a deal but government officials said there were key sticking points.

The BBC's Barbara Plett in Islamabad says one problem is the balance of power between parliament and the president.

Our correspondent says Ms Bhutto wants the president to give up the power to dissolve parliament, which she hopes to head after forthcoming elections.

Gen Musharraf is seeking support for re-election as president.

But he is under pressure to reach a deal with the opposition after several Supreme Court rulings have gone against him.

Under Pakistani law, prime ministers cannot serve more than two terms - which would disqualify both Ms Bhutto and Mr Sharif.

Ms Bhutto wants this clause removed from constitution, and she says a deal will only be made with Gen Musharraf if he resigns his army role.

The general's spokesman said on Thursday he was considering standing down from his army position, but no decision had yet been made.

Mr Sharif was sentenced to life in prison for offences including tax evasion and treason after the 1999 coup.