Pakistan ruling damages Musharraf's plan-papers

ISLAMABAD, Aug 24 (Reuters) A Pakistan Supreme Court ruling that former prime minister Nawaz Sharif can return home has dealt a blow to President Pervez Musharraf's efforts to hold on to power, Pakistan newspapers said today.

Mr Sharif, a two-time prime minister, has been in exile since 2000. The previous year, army chief General Pervez Musharraf overthrew him in a bloodless coup that was widely welcomed.

Mr Sharif told reporters in London yesterday he would return as soon as possible to contest elections.

The court ruling and Mr Sharif's expected return have raised more doubts about efforts by General Musharraf to secure another term as leader of the nuclear armed country that is vital to US efforts to defeat terrorism and pacify Afghanistan.

Gen Musharraf intends to seek re-election from the national and provincial assemblies, while remaining army chief, between mid-September and mid-October and hold parliamentary elections within months.

''The verdict ... has the potential to severely dent the president's re-election plan,'' the News, the country's biggest selling English-language newspaper, said in an editorial.

''There could not be a sharper wound inflicted on ... Gen Musharraf's political strategies,'' the Post said.

While boosting prospects for Mr Sharif and his faction of the Pakistan Muslim League (PML-Nawaz), the ruling could hurt another former prime minister in exile, Benazir Bhutto, who has been negotiating a power-sharing deal with Gen Musharraf, newspapers said.

''This turn in the situation has put Ms Benazir Bhutto and her Pakistan People's Party in an awkward position,'' the Dawn newspaper said.

''Her secret meeting with President Pervez Musharraf and the deal she now acknowledges she was negotiating with him will not exactly add to her popularity.'' The News also said the ruling put any deal between the president and Bhutto in jeopardy. Many members of her party believe she should not be in talks with GenMusharraf.

Backing from Bhutto's PPP could help Musharraf obtain a two-thirds majority needed to pass constitutional amendments that would help him avoid challenges to his re-election being lodged with a Supreme Court.

Mr Sharif, who has allied himself with conservative religious parties, has steadfastedly refused to have any dealings with Gen Musharraf and has criticised Ms Bhutto for negotiating.

Gen Musharraf has yet to react publicly to the ruling but yesterday he spoke of the need for reconciliation.

Such comments are unlikely to allay fears he may impose an emergency even though he has ruled that out.

The uncertainty has hit Pakistani stocks, which have lost about 13 percent this month. The main index fell 1.63 per cent early today but ended slightly up on bargain-hunting.

''SOLE CHALLENGER'' Newspapers, that have enjoyed more freedom under Gen Musharraf than they did under Mr Sharif, said the ruling had put the exiled leader centre-stage.

''The judgement has catapulted him into the limelight as the sole challenger to the unpopular General Musharraf,'' the Daily Times said.

The ruling also cleared the way for the return of Mr Sharif's brother, Shahbaz, also a senior PML-N leader. Their power-base is Punjab, the country' richest and most populous province.

''Arguably, they remain the most potent political force in Punjab,'' the News said.

Mr Nawaz Sharif was convicted on graft charges and also sentenced to life in prison for ordering landing rights to be refused to an aircraft carrying General Musharraf and 197 passengers, despite it being short of fuel. The army launched a coup to save its chief while he was in the air.

Mr Sharif went to Saudi Arabia after the government said he agreed to 10 years exile. But he denied any such agreement and filed a petition to secure his return.

The attorney-general said yesterday if he came back, Mr Sharif might have to face the prison term he avoided by leaving. He also still faces corruption charges.

The Daily Times said he would likely face arrest.

''But given the mood of the Supreme Court he should expect to be bailed out soon enough. That will make him seem even more invincible.'' REUTERS PD BD1851