Pakistan's two largest political parties — which won last month's national elections — sealed a power-sharing deal yesterday, raising doubts about President Musharraf's political future.

The accord between Asif Ali Zardari, the de facto leader of the Pakistan People's Party (PPP) and widower of the murdered former Prime Minister Benazir Bhutto, and the Pakistan Muslim League (N) led by Nawaz Sharif, another former Prime Minister, cleared the way for the formation of an anti-Musharraf government.

“We feel that the country is on the verge of making history,” said Mr Zardari. “This was also the desire of Benazir Bhutto and we also intend to stick to the road to democracy; we are aware of the problems that the country is facing.”

Mr Sharif said that his party would be part of a federal coalition led by the PPP, which is expected to name its prime ministerial candidate this week. The PPP has won 120 seats in the new 342-seat National Assembly, and the Muslim League 90, bringing them close to the two-thirds majority required to strip Mr Musharraf of his powers to dismiss Parliament. The Assembly is expected to meet in ten days' time.

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

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• Pictures: death of Benazir Bhutto

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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

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On Saturday Mr Musharraf urged his opponents to put politics aside and concentrate on forming a “stable government and peace in society”.

Mr Zardari said that he had nothing personal against the President but Mr Sharif suggested that he had no future once the new government was formed. “I do not think we have recognised Musharraf's existence; we consider him an unconstitutional and illegal president and would not like our sacrifices that we made during the last eight years to go down the drain,” said Mr Sharif, who was ousted by Mr Musharraf in a military coup in 1999.

Much could depend on who will emerge as the country's new prime minister. The delay in naming the candidates partly reflects the power vacuum left after the assassination in late December of Ms Bhutto. Her husband and son have taken over as co-heads of the PPP but questions remain about whether anyone without her influence and charisma can keep the party united and growing in strength.

Amin Fahim, who is from a wealthy land-owning family in the southern province of Sindh, and Ahmed Mukhtar, who comes from a prominent industrialist family in the Punjab region, Pakistan's most populous province, are the leading candidates for the post. Both are known for their pro-Western and liberal political views.

The prime minister will have to bring the PPP's internal factions together as well as work with coalition partners in the new government. Mr Fahim, 66, was initially considered the main contender for the post but his appeal waned after it emerged that he had met Mr Musharraf without informing the party leadership.

Mr Mukhtar, 61, who was Commerce Minister in a previous Bhutto government, has emerged as a candidate in the past few days after the PPP leadership indicated that it was considering picking someone from Punjab province, the main bastion of political power in Pakistan.

The two parties have promised to restore the Chief Justice and other judges, dismissed by President Musharraf in November under emergency rule, within 30 days of the new Parliament's formation.

Any such resolution would bring the new Government into direct confrontation with Mr Musharraf, who has advised against the reinstatement of the judges.

The embattled leader removed Iftikhar Muhammad Chaudhry, the Chief Justice, and some 60 other independent judges of higher courts, fearing that they might not endorse his controversial re-election as President for another five year term. Mr Chaudhry is still under house arrest.

His arrest triggered nationwide protests by lawyers and led to the defeat of Mr Musharraf's supporters in last month's elections. Some analysts predict that the President might resign if the judge returns. Police fired teargas shells to disperse hundreds of protesters who tried to force their way through a police cordon around Mr Chaudhry's residence in Islamabad demanding his immediate release.

Yesterday lawyers announced a week of fresh protests and urged the new Parliament to get the judges' restored. Several thousand people, including union members and journalists, gathered peacefully in the southern city of Karachi also to demand that Mr Musharraf step down.

Troubled times

March 2007 President Musharraf suspends Justice Iftikhar Chaudhry, the Supreme Court Chief. Supporters of Benazir Bhutto and Nawaz Sharif hold joint protests July Supreme Court reinstates Chaudhry. Bhutto and Musharraf discuss power-sharing deal

August Supreme Court rules that Sharif can return from exile

September Sharif returns but is sent back without leaving aircraft

October Musharraf wins presidential election, Supreme Court declares result invalid. Bhutto returns and narrowly escapes suicide bombing

November Musharraf declares state of emergency, dismisses Chaudhry again. Election Commission announces elections for January 8, 2008, ratifies Musharraf's election

December 15 State of emergency lifted

December 27 Bhutto assassinated

January 2008 Election postponed to February 18

February 18 Bhutto and Sharif's parties share clear majority of vote

Source: Times archives

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