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| Inquiry Snares Altaf Hussein, Exiled M.Q.M. Chief | Inquiry Snares Altaf Hussein, Exiled M.Q.M. Chief |
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| LONDON — The British police arrested Altaf Hussain, the leader of a powerful Pakistani political party, on suspicion of money laundering on Tuesday, causing a panicked reaction in Karachi, where businesses closed and residents rushed home fearing possible political violence. | LONDON — The British police arrested Altaf Hussain, the leader of a powerful Pakistani political party, on suspicion of money laundering on Tuesday, causing a panicked reaction in Karachi, where businesses closed and residents rushed home fearing possible political violence. |
| Mr. Hussain was arrested at his home in Edgware in Northwest London early Tuesday as the police began searching the house, said Muhammad Anwar, a senior London-based official with his party, the Muttahida Qaumi Movement, or M.Q.M. His aides said Mr. Hussain was in too poor of health to be moved, but there news reports later saying that he had been taken to police headquarters for questioning. | |
| News of the arrest spread rapidly in Karachi, the capital of Sindh Province and a city of 20 million that Mr. Hussain’s party has dominated for nearly three decades through a combination of electoral politics and street violence. | News of the arrest spread rapidly in Karachi, the capital of Sindh Province and a city of 20 million that Mr. Hussain’s party has dominated for nearly three decades through a combination of electoral politics and street violence. |
| Shops closed immediately, and tens of thousands of people rushed home, causing long traffic jams on several major streets. The Karachi Stock Exchange initially dropped 780 points — just over 2 percent of its value — although it later recovered somewhat. Pakistani television news channels reported sporadic gunfire in parts of Karachi and Hyderabad, another large city in Sindh where the M.Q.M. enjoys strong support. The stations reported that at least six vehicles were burned by protesters. | |
| “There’s an environment of fear and uncertainty,” said Ismail Lalpuria, general secretary of the Sindh Traders’ Association. | “There’s an environment of fear and uncertainty,” said Ismail Lalpuria, general secretary of the Sindh Traders’ Association. |
| The British diplomatic mission in Karachi said it was closing temporarily, while senior Karachi police officials held an emergency meeting to discuss the security situation. | The British diplomatic mission in Karachi said it was closing temporarily, while senior Karachi police officials held an emergency meeting to discuss the security situation. |
| “There is a visible state of panic,” Inspector Atiq Ahmed Sheikh, a police spokesman, said in reference to the chaotic scenes on the roads. “I’ve also seen reports of gunfire, but no serious incident has been reported as yet.” | “There is a visible state of panic,” Inspector Atiq Ahmed Sheikh, a police spokesman, said in reference to the chaotic scenes on the roads. “I’ve also seen reports of gunfire, but no serious incident has been reported as yet.” |
| Hospital emergency rooms across the city girded for possible violence, but as evening fell, most of the city was calm. Dr. Seemin Jamali, at the Jinnah Postgraduate Medical Center, said that three people had been admitted with gunshot wounds — a relatively low toll in a city where political violence is a daily occurrence. | Hospital emergency rooms across the city girded for possible violence, but as evening fell, most of the city was calm. Dr. Seemin Jamali, at the Jinnah Postgraduate Medical Center, said that three people had been admitted with gunshot wounds — a relatively low toll in a city where political violence is a daily occurrence. |
| Shazaf Fatima Haider, a novelist, described fraught scenes at a fuel station in the upscale Clifton neighborhood, which is home to several diplomatic missions, where arguments erupted between motorists and pedestrians lined up to buy gasoline. “Everyone was a little hysterical,” she said. “At first people were good-humored but then they got angry when someone broke the line.” | Shazaf Fatima Haider, a novelist, described fraught scenes at a fuel station in the upscale Clifton neighborhood, which is home to several diplomatic missions, where arguments erupted between motorists and pedestrians lined up to buy gasoline. “Everyone was a little hysterical,” she said. “At first people were good-humored but then they got angry when someone broke the line.” |
| Adeel Sattar, a spokesman for the Railways Ministry, said incoming and outgoing trains were suspended for three hours because of security concerns in Karachi, but there was no indefinite suspension. | Adeel Sattar, a spokesman for the Railways Ministry, said incoming and outgoing trains were suspended for three hours because of security concerns in Karachi, but there was no indefinite suspension. |
| M.Q.M. supporters demonstrated outside the party’s Karachi headquarters, waving posters of Mr. Hussain and listening to party anthems. “What the Metropolitan Police is doing is incomprehensible to us,” said Dr. Farooq Sattar, a senior leader, in an address to the crowd. “Our priority is Altaf Hussain’s health.” | |
| In a mass text message, one M.Q.M. lawmaker, Syed Ali Raza Abidi, advised supporters to ignore what he described as “rumors” of Mr. Hussain’s arrest, which he dismissed as a “smokescreen” to divert attention from the federal budget that was being presented to the lower house of Parliament in Islamabad on Tuesday. | In a mass text message, one M.Q.M. lawmaker, Syed Ali Raza Abidi, advised supporters to ignore what he described as “rumors” of Mr. Hussain’s arrest, which he dismissed as a “smokescreen” to divert attention from the federal budget that was being presented to the lower house of Parliament in Islamabad on Tuesday. |
| In Islamabad, an aide to Prime Minister Nawaz Sharif described Mr. Sharif’s reaction to the news as “somber” and said he was seeking further details from Pakistani diplomats in London. | In Islamabad, an aide to Prime Minister Nawaz Sharif described Mr. Sharif’s reaction to the news as “somber” and said he was seeking further details from Pakistani diplomats in London. |
| Mr. Hussain’s arrest is likely to test the internal unity of the M.Q.M., which represents mohajirs, the term for the mainly Urdu-speaking Muslims whose families moved to Pakistan after the partition from India in 1947 and who make up a sizable proportion of the population in Karachi. Pakistani news reports said the party leadership was to hold an emergency meeting later on Tuesday to discuss the crisis. | Mr. Hussain’s arrest is likely to test the internal unity of the M.Q.M., which represents mohajirs, the term for the mainly Urdu-speaking Muslims whose families moved to Pakistan after the partition from India in 1947 and who make up a sizable proportion of the population in Karachi. Pakistani news reports said the party leadership was to hold an emergency meeting later on Tuesday to discuss the crisis. |
| The M.Q.M. controls most of the parliamentary seats for Karachi, and has been a part of several coalition governments. But it also exercises influence through a network of heavily armed street gangs that operate in some neighborhoods. | The M.Q.M. controls most of the parliamentary seats for Karachi, and has been a part of several coalition governments. But it also exercises influence through a network of heavily armed street gangs that operate in some neighborhoods. |
| The party is dominated by Mr. Hussain, a charismatic figure who summons his party subordinates to meetings in London and addresses giant street rallies in Karachi, often with tens of thousands of supporters, by telephone and video conference. | The party is dominated by Mr. Hussain, a charismatic figure who summons his party subordinates to meetings in London and addresses giant street rallies in Karachi, often with tens of thousands of supporters, by telephone and video conference. |
| Mr. Hussain has not returned to Pakistan since he established himself in London in 1992. He obtained a British passport in 2002. But in recent weeks, he has been frantically requesting a Pakistani passport from officials at the High Commission in London, according to Pakistani officials. | Mr. Hussain has not returned to Pakistan since he established himself in London in 1992. He obtained a British passport in 2002. But in recent weeks, he has been frantically requesting a Pakistani passport from officials at the High Commission in London, according to Pakistani officials. |
| The charges against Mr. Hussain stem from a police investigation into the death of Imran Farooq, a former party loyalist who was stabbed to death outside his home near Mr. Hussain’s office in Edgware in 2010. | The charges against Mr. Hussain stem from a police investigation into the death of Imran Farooq, a former party loyalist who was stabbed to death outside his home near Mr. Hussain’s office in Edgware in 2010. |
| Mr. Farooq had once been a close associate of Mr. Hussain’s, who publicly mourned his passing. But the two men had fallen out before his death, and the police investigation started to close in on Mr. Hussain and his associates. | Mr. Farooq had once been a close associate of Mr. Hussain’s, who publicly mourned his passing. But the two men had fallen out before his death, and the police investigation started to close in on Mr. Hussain and his associates. |
| The police raided Mr. Hussain’s office in December 2012 and his house in June 2013, impounding about $600,000 in cash and arresting Iftikhar Hussain, a nephew of Mr. Hussain’s who worked as a personal assistant. | The police raided Mr. Hussain’s office in December 2012 and his house in June 2013, impounding about $600,000 in cash and arresting Iftikhar Hussain, a nephew of Mr. Hussain’s who worked as a personal assistant. |
| This spring, British officials asked Pakistan’s interior minister, Chaudhry Nisar Ali, for access to two Pakistani men linked to the death of Mr. Farooq. Pakistani officials said the two men were believed to be in the custody of the ISI, the country’s top military intelligence agency. | This spring, British officials asked Pakistan’s interior minister, Chaudhry Nisar Ali, for access to two Pakistani men linked to the death of Mr. Farooq. Pakistani officials said the two men were believed to be in the custody of the ISI, the country’s top military intelligence agency. |
| Scotland Yard named the two men and published their photographs last week, apparently in a bid to pressure the Pakistani authorities to hand them over. They were identified as Moshin Ali Syed, 29, and Muhammad Kashif Khan Kamran, 34. Both men were in London at the time of Mr. Farooq’s death and flew to Pakistan that night. | Scotland Yard named the two men and published their photographs last week, apparently in a bid to pressure the Pakistani authorities to hand them over. They were identified as Moshin Ali Syed, 29, and Muhammad Kashif Khan Kamran, 34. Both men were in London at the time of Mr. Farooq’s death and flew to Pakistan that night. |
| The investigation brought police scrutiny of Mr. Hussain’s finances in London. Mr. Hussain has considerable living expenses in London — his house is guarded by a private security team including former soldiers from the British Army — and his party officials have scrambled to explain the sources of his funding. | The investigation brought police scrutiny of Mr. Hussain’s finances in London. Mr. Hussain has considerable living expenses in London — his house is guarded by a private security team including former soldiers from the British Army — and his party officials have scrambled to explain the sources of his funding. |
| One businessman told The New York Times on the condition of anonymity that after he had donated $25,000 to the M.Q.M., he was asked by party officials to sign a statement saying that he had donated $500,000. | One businessman told The New York Times on the condition of anonymity that after he had donated $25,000 to the M.Q.M., he was asked by party officials to sign a statement saying that he had donated $500,000. |