Pakistan was suspended from the Commonwealth last night despite last-minute assurances from President Musharraf that he would lift the state of emergency soon.

The decision threatens to deprive Pakistan of hundreds of millions of pounds of foreign investment and Commonwealth development funding, as well as excluding it from the 53-member bloc’s decision-making councils until democracy is restored.

Foreign ministers meeting in Kampala agreed that General Musharraf had made some progress towards fulfilling the conditions demanded by the Commonwealth ten days ago. But they ruled that by suspending the Constitution, jailing lawyers and other political opponents and imposing emergency rule he had violated the democratic principles of the Commonwealth.

Expressing regret for Pakistan’s failure to comply with its ultimatum the Commonwealth said that it had suspended Pakistan “pending the restoration of democracy and the rule of law in that country”.

Bhutto was killed by bomb blast

The team from the Metropolitan Police’s Counter Terrorism Command have backed the claim that Benazir Bhutto was not shot

BACKGROUND

• Pakistan in turmoil as ‘martial law’ imposed

• Bhutto escapes as bombers kill 126

• Timeline: Pakistan's period of turmoil

• The man out to oust a President

• Internal crisis gives Pakistan reason for hope

Related Links

• Pakistan court rules in Musharraf's favour

• Arrested Development

• Analysis: this tainted ruling resolves nothing

“This decision was taken in sorrow, not in anger,” David Miliband, the Foreign Secretary, said. “Democracy and the rule of law are the best allies of security and stability in Pakistan.”

The Commonwealth foreign ministers reached their decision after a four-hour debate in which Malaysia and Sri Lanka opposed the suspension, but most of the African nations called for it. Britain and Canada pushed for the compromise eventually adopted, under which General Musharraf was told that if he met the conditions and held free and fair elections in January, Pakistan would soon be readmitted. A senior British source said that Pakistan could return to the fold within a relatively short time.

The Pakistan Supreme Court - newly stacked with loyalists – yesterday ensured General Musharraf another five-year term by rejecting the final legal challenge to his reelection. As a result General Musharraf is set to resign as head of the army and take an oath, possibly tomorrow, to rule as a civilian president for the first time since he grabbed power in a 1999 coup. Ditching his uniform has been one of the key demands of the international community.

Gordon Brown, after talking to President Bush, had urged General Musharraf to do more. Before he left London for Kampala he said that the Pakistani leader had assured him that he would do his utmost to lift the state of emergency in time for free and fair elections to be held in January.

Last night Mr Brown described the decision to suspend Pakistan as “clear and necessary”. Mr Brown said after arriving in Kampala: “President Musharraf has said he will take the steps necessary to restore democracy. The Commonwealth is strongly of the view that he must now do so. We will work with Pakistan and the Commonwealth to ensure that Pakistan returns to its rightful position in the Commonwealth once the remaining steps are taken.”

Pakistan was last suspended from the Commonwealth in 1999 after General Musharraf’s coup. Its membership was restored in 2004 after he promised to stand down as army chief.

The renewed suspension could have a severe impact on Pakistan’s economy. Mohan Kaul, the secretary-general of the bloc’s business arm, the Commonwealth Business Council, said that it had been forced to postpone a business conference with potential investors last year because of the instability of the country and the growing threat posed by Islamist extremists. The conference is now tentatively rearranged to take place early next year, but only if the state of emergency is lifted.

“One year back or even six months back, Pakistan was seen to be a very fast-growing economy. The investing business community was given confidence, at the time, about Pakistan’s growth and economic stability,” Dr Kaul told The Times. “Now suddenly, due to the instability caused by rising extremism, that confidence has been drastically reduced. Because of the emergency of the last few weeks the position has been worsened considerably again.

“Investors tend to operate in a herd mentality, and the suspension outcome is likely to have very severe consequences for investment in the Pakistani economy.”

General Musharraf won one-sided presidential elections that were boycotted by all opposition parties on October 6. Formal ratification of the result was delayed until the Supreme Court ruled on whether he had been eligible to run while still wearing his military uniform. Despite yesterday’s court ruling that the result should stand, many analysts contend that his legitimacy remains controversial.

When they travel to a Commonwealth retreat outside Kampala tomorrow, the Prime Minister and other leaders are expected to press President Mbeki of South Africa to step up the pressure on President Mugabe to lift the oppression in Zimbabwe.

Times Recommends

• 'Radio Rancid' is scourge of Obama
• French gulp as global warming alters wines
• Colton, the barefoot boy bandit, outfoxes sheriffs