PAKISTAN’S exiled former prime minister, Benazir Bhutto, is to make an early return to challenge plans by General Pervez Musharraf, the military ruler, to secure a new term as president without waiting for elections.

In an interview with The Sunday Times, she said the logic for a political deal that she had been contemplating with Musharraf had been significantly weakened by the Supreme Court’s decision last week to reinstate Iftikhar Chaudhry, the chief justice he suspended earlier this year over claims of nepotism.

Critics said the real reason for the suspension had been that Musharraf believed Chaudhry would overrule his plans to be reappointed by the current parliament, in which he has a majority, rather than wait for a new assembly that is due to be elected by the end of this year.

Last night Bhutto said the Supreme Court had reasserted the independence of the judiciary and the newly strengthened courts could topple Musharraf through rulings on whether he can be appointed twice by the same assembly and whether he can continue to serve as both president and army chief of staff.

Any deal now with the general would be unpopular and damaging to her Pakistan People’s party (PPP), she said.

The only circumstances in which she might still consider an arrangement would be if she felt it necessary to guarantee fair parliamentary elections on time.

“He has lost his moral authority. His popularity rates are down and it would be very unpopular if we saved him. We would lose votes by being associated with him,” she said.

Musharraf, who is struggling to contain a resurgence of terrorism, has not threatened to delay elections, although the constitution allows him to do so for one year. Leading supporters have raised the possibility, however.

Bhutto will wait to see if Musharraf goes through with his plan to be reappointed by the assembly before deciding whether to abandon discussions with him.

Speaking in London, Bhutto, who risks arrest on corruption charges on her return to Pakistan, said she felt that going home would be less hazardous than previously thought and she would make a final decision on the date next month.

“I said I would return by December, but now my people tell me we should go to court in regard to my return, and that I should come back as soon as possible, maybe in September. We will decide at a party meeting at the end of August,” she said.

“I feel safer about returning after the Supreme Court’s decision.”

The reinstatement of the popular chief justice has left Musharraf more isolated than at any time since he seized power in 1999.

The Pakistani army is struggling to get to grips with Al-Qaeda and Taliban fighters who have killed 95 soldiers since Musharraf ordered a raid on militants occupying Islamabad’s Red Mosque earlier this month. That raid left 102 people dead and triggered a wave of suicide bombings.

Ayman al-Zawahiri, Al-Qaeda’s deputy leader, has called on Pakistanis to overthrow their government. Taliban leaders in the North Waziristan tribal area have launched attacks on army checkpoints and convoys.

President George W Bush in his weekly radio address yesterday endorsed comments by intelligence officials who said that a peace deal reached by Musharraf with the Taliban last summer allowed Al-Qaeda to rebuild bases in Pakistan, boosting its ability to attack America.

This weekend Musharraf was locked in emergency meetings with cabinet colleagues, plotting a strategy to save his leadership.

If he seeks a mandate from the current parliament but is overruled by the Supreme Court, he will be forced to hand over the presidency to a caretaker.

Bhutto’s advisers are preparing to challenge his right to continue wearing his army chief’s uniform while serving as president, and are seeking to restore millions of voters to the electoral roll. They will also ask for a ruling on whether Bhutto should be released if she is arrested when she returns to Pakistan.

According to friends of Musharraf, he is not confident that a newly elected assembly would elect him and believes he needs six months to “soften up” MPs.

His problem is that his own term ends before that of the current assembly. To win a democratic mandate for a new term, he must either bring forward the elections or extend the term of the current assembly to give himself more time to win over MPs.

This can be done under the constitution if it can be shown that a delay is needed to tackle “lawlessness”.

The deteriorating security situation, particularly in the tribal areas bordering Afghanistan, would help him to justify such a move. A war appears to be looming between Al-Qaeda-led Taliban fighters and Musharraf’s forces.

His strongest domestic ally in his war on the country’s Islamic militants has been Bhutto. Despite public criticism of Musharraf by US officials, they still believe that he is essential to hopes of restoring stability to the country. They also believe that he needs a deal with Bhutto to make headway and restore democratic legitimacy.

The options

A comeback by Benazir Bhutto

Likely, but she faces an uphill struggle to become prime minister again. She could nominate a colleague as prime minister while calling the shots as party boss.

Early election

Unlikely. Musharraf would have to announce elections next week so that they could be held three months later, just before his term ends.

An army coup

Not be ruled out. There are rumblings in the ranks.

A return to barracks

Musharraf could choose to abandon politics, though his successor as president might regard him as a threat as chief of staff and pension him off.

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