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The return from exile of Nawaz Sharif demonstrates just how weak President Musharraf has become in the past two months.
In September Mr Sharif, the former Pakistani prime minister, arrived in the country and was immediately arrested and bundled back to Saudi Arabia. This time General Musharraf felt that he had no option but to accept Saudi pressure and allow his arch-rival to stay in Pakistan.
The President's political standing has plummeted since he declared emergency rule on November 3, imprisoned members of the judiciary and introduced limits on media freedom.
Benazir Bhutto, another exiled former leader, also returned to the country last month to leave him facing direct challenges to his power from two ex-prime ministers.
Once General Musharraf was too weak to block Ms Bhutto’s return it was inevitable that she would be followed by Mr Sharif.
The Saudi Royal Family was willing to take Mr Sharif back in September as a favour to both the former prime minister and the Pakistani Government. But, as soon as they witnessed Ms Bhutto arriving back in the country they began to lobby for Mr Sharif’s return in the strongest possible terms.
The Saudis have never accepted Ms Bhutto, the British educated former leader, because of her gender and pro-Western views.
The Saudi Royal Family has significant influence in Pakistan. Shared religious beliefs mean that the Saudi King is popularly known as the Keeper of Holy Places in the troubled country and there are deep-rooted political and economic links between the nations.
In 1998 Washington imposed sanctions on Pakistan for nuclear testing and the Saudis gave Mr Sharif’s Government substantial aid - some reports have suggested that they even went on to bankroll the continued nuclear programme.
That strong relationship between the Saudis and Mr Sharif has continued and President Musharraf is no longer in a position to block the lobbying for his return.
The two men have been sworn enemies since General Musharraf deposed Mr Sharif in a bloodless coup in October 1999.
Now that Mr Sharif is back in Pakistan it is unclear whether he will be allowed to contest forthcoming elections. In the aftermath of the military coup he was sentenced to life in prison for a variety of offences and convicted criminals are barred from taking part in Pakistani elections.
Legal wrangles will continue over his right to stand for office but one thing is certain – there is no chance of any compromise or reconciliation between the two men. It is all out war
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