Musharraf and Bhutto Close to Power-sharing Deal in Pakistan

Exiled Pakistani opposition leader Benazir Bhutto edged closer to a power-sharing deal with President Pervez Musharraf last night as tomorrow's presidential election approached.

Ms Bhutto said she was "optimistic" that an agreement could be struck. "We expect there will be an understanding towards a transition towards democracy," she said in London, where her party leadership is meeting.

General Musharraf needs Ms Bhutto's support to lend legitimacy to tomorrow's vote, when he is likely to be returned for another five-year term.

He has already agreed to quash long-standing corruption charges against Ms Bhutto, who fled into exile in 1999 to avoid arrest. But other hurdles remained. Gen Musharraf faces stiff opposition from his own party over demands that he lift a ban on Ms Bhutto becoming prime minister for a third time. As talks hung in the balance last night, Ms Bhutto said she wanted to see a copy of the amnesty Gen Musharraf was offering. "There is many a slip between the cup and the lip," she said.

Ms Bhutto has threatened to pull her party out of parliament today if her demands are not met. More than 80 MPs from other parties have already resigned, and two others have lodged complaints with the supreme court over Gen Musharraf's eligibility to run while still head of the army.

But political imperatives are pushing both sides towards agreement. Ms Bhutto plans to return to Pakistan on October 18 and needs Gen Musharraf's support to avoid prosecution. Gen Musharraf, who has promised to resign from the army once re-elected, needs Ms Bhutto to bolster his support in January's general elections.