Cracks appeared in Pakistan's ruling coalition yesterday as the death toll from a bomb attack outside a hospital rose to 30, highlighting the daunting problems facing the country after Pervez Musharraf's resignation as President on Monday.

Coalition leaders met for several hours in Islamabad to discuss whether to prosecute Mr Musharraf, who should replace him and how to tackle the nation's dire economic and security problems.

Negotiations stalled over the thorny question of whether to reinstate the judges whom Mr Musharraf dismissed last year when he imposed emergency rule to ensure his re-election.

Sherry Rehman, the Information Minister, said that no progress had been made in talks between the leaders of the Pakistan People's Party (PPP), the Pakistan Muslim League (N) and two smaller coalition partners.

Asif Ali Zardari, the PPP leader and Benazir Bhutto's widower, and Nawaz Sharif, the PML (N) leader, had promised to reinstate all the dismissed judges after Mr Musharraf's departure. Mr Sharif remains determined to reappoint them all.

Mr Zardari is reluctant to reinstate Iftikhar Chaudhury, the former Chief Justice, in case he overturns the amnesty from corruption charges that Mr Musharraf granted PPP leaders last year.

Their disagreement threatens to leave a power vacuum in Pakistan, the West's key Muslim ally in the War on Terror, as al-Qaeda and Taleban militants increase their activities on the border with Afghanistan. It could even lead to another realignment of political forces, threatening further instability in the mostly Muslim country of 165 million people.

A senior official of the pro-Musharraf Pakistan Muslim League (Q) told The Times that talks were under way with the PML (N) for the reunification of the two factions, which split in 1999. A formal merger is not possible under a law against floor-crossing in Parliament but there is a strong possibility of them aligning against the PPP.

The PPP and PML (N) have traditionally been rivals and disagree on most main domestic and foreign policy issues. While Mr Zardari is more Western-oriented and favours continuing Mr Musharraf's co-operation in the War on Terror, Mr Sharif has more conservative social views and wants to review pro-American policies. The PML (Q) has a similar outlook.

There is likely to be additional confrontation on the question of who replaces Mr Musharraf.

The PPP is determined to have its own man as president but PML (N) sources said that the two PML factions could unite to block Mr Zardari if he decides to stand for the job.

A new president must be elected within 30 days by an electoral college made up from the national Parliament and the four provincial assemblies.

In the meantime the country will remain rudderless as it faces high inflation, power shortages and increasing violence in its northern tribal areas.

Yesterday's suicide bomb struck at a hospital in the town of Dera Ismail Khan as members of the Shia Muslim minority were holding a protest against the killing of a leader earlier in the day. The Pakistani Taleban claimed responsibility.

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