Musharraf Resigns, Leaving Shaky Pakistan in His Wake
By
PETER WONACOTT and
ZAHID HUSSAIN August 19, 2008
ISLAMABAD, Pakistan -- Pakistan's President Pervez Musharraf resigned, handing leadership of this volatile nuclear-armed nation to a divided government that is struggling to tackle Islamic militancy and an economic downturn.
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Key leaders and their political parties in Pakistan.
Mr. Musharraf's resignation, announced in a national television address Monday, marks a victory for the governing coalition of his political opponents that was preparing to impeach him. Yet it also deprives the government of its scapegoat for the country's woes. It leaves the coalition alone to deliver on the promise of better governance in a new democratic era, which Mr. Musharraf helped usher in with parliamentary elections in February.
"Now, the entire burden will be on their shoulders," said Athar Minallah, a Supreme Court lawyer. He, like others in his profession, had rallied against Mr. Musharraf's efforts in March 2007 to oust Pakistan's chief justice, a move that began the groundswell of opposition against the president. "If they make a mistake, they will become history -- like Pervez Musharraf."
EPA Pakistan's President Pervez Musharraf salutes from his car as he leaves the presidency following his resignation in Islamabad, Pakistan.
The Bush administration, which had regularly hailed Mr. Musharraf as a leading ally in the fight against terrorism, did little to keep him in office. U.S. officials came to view him as a spent force after he declared a state of emergency in November in an ultimately unsuccessful bid to sideline opponents.
But the U.S. administration is concerned about fading cooperation with Pakistan in battling al Qaeda and Islamic extremism. Amid Pakistan's disarray, militants have had freer rein to use its territory as a staging ground for attacking American soldiers in Afghanistan.
The Pakistani government also faces a challenge in keeping the hobbled economy going. Inflation is running above 20%, as underinvestment in agriculture and the global food crunch drive up the price of staples. The benchmark stock index jumped 4.5% on news of Mr. Musharraf's resignation, and the Pakistani rupee, which had fallen to a record low against the dollar, gained ground.
The rupee has been sinking largely because of a soaring current account deficit triggered by higher oil prices. Pakistan has asked for relief from an estimated $6 billion in short-term debt it owes Saudi Arabia and other suppliers.
The Karachi Stock Exchange's benchmark index has lost about 30% since hitting a peak in April. The index, one of the world's best performers in recent years, had risen 40% in 2007.
Musharraf, who had promised to defeat those who tried to oust him, announces his resignation before charges against him were due to be presented to parliament. Video courtesy of Reuters. (Aug. 18)
Though growth was generally strong under Mr. Musharraf and Shaukat Aziz, the pro-market prime minister from 2004 to 2007, some Pakistanis still blame the ex-president for the country's continuing relative poverty. "He's had nine years, but we still don't have reliable electricity or clean water," said Noman Manzoor, a 30-year-old government employee. "The other side should be given a chance."
The two main parties in the coalition have different economic philosophies. The Pakistan People's Party has long favored economic policies that directly benefit the poor, which resulted in ballooning debts during the rule of the Benazir Bhutto, the former prime minister who was assassinated last year. The party of former Prime Minister Nawaz Sharif is known as pro-business, and when he was prime minister the country opened itself to investors and built a highway network.
"Musharraf's resignation eliminates the political uncertainty in the markets," said Asad Iqbal, managing director at Ismail Iqbal Securities in Karachi. "Now the government has no excuses. Economically, they have to perform better."
U.S. officials have had bumpy ties with Mr. Sharif, who as prime minister was blamed for allowing the Pakistani army to use Islamic militants to carry out attacks in India.
Tough Stand
Mr. Musharraf maintained a tough public stand against Islamic militants, even if he compromised frequently to avoid fighting. The new government is testing a broader approach of peace deals combined with military assaults, and so far it doesn't appear to be succeeding.
Associated Press
See key dates from Musharraf's tumultuous tenure as army chief and president.
Pakistan's spy agency, Inter-Services Intelligence, has been blamed for backing terrorist attacks in Afghanistan, including last month's suicide bombing at the Indian Embassy in Kabul that killed about 60 people. The government denies the charge. Tensions have also risen between Pakistan and India over the disputed territory of Kashmir, hampering progress in Afghanistan and destabilizing the government of its president, Hamid Karzai.
"Unless Pakistan, India and the U.S. are on the same page, nothing is going to happen in Afghanistan," said Jehangir Karamat, a retired army chief and former Pakistani ambassador to the U.S.
Mr. Musharraf's announcement came near the end of an hourlong live telecast. He said the country didn't need the confrontation and further instability that his pending impeachment would bring, even though he said he was confident that an impeachment effort would fail. "Not a single charge in the charge sheet can stand against me," he said. "I haven't done anything for personal gain. Whatever I have done I've done for Pakistan."
Instead, he turned over the presidency to the speaker of Pakistan's Parliament.
It was a dramatic political end for the 65-year-old former army chief, who came to power in a bloodless military coup in 1999 by deposing a civilian government, led by Mr. Sharif, that was criticized as autocratic and corrupt. Mr. Musharraf's administration enjoyed wide backing in the beginning and was helped by surging economic growth and more than $10 billion in U.S. aid following the Sept. 11, 2001, terrorist attacks.
But his recent moves to quash dissenters only emboldened them. Over the past 18 months, he dismissed unfriendly judges and rammed through his own re-election to another five-year term as president. The media, which he helped to liberalize, broadcast reports challenging his rule. That galvanized a new, politically involved middle class, in particular lawyers who wanted an independent judiciary. When Mr. Musharraf agreed to hold parliamentary elections in February, his opponents were swept to power.
"He took the country in the right direction," said Asa Niaz, a 28-year-old corporate-event planner in Islamabad. "But last year, he had a bad year."
Jubilant Gunfire
His resignation announcement set off jubilant gunfire in Pakistan's commercial capital of Karachi. Crowds also gathered to celebrate in Islamabad and Lahore.
Mr. Musharraf's resignation capped days of secret talks that involved the army as well as Pakistan's key allies, Saudi Arabia and the U.S. In return for stepping down, Mr. Musharraf -- a target of multiple assassination attempts -- received assurances that he would be given full protection by the army, according to a senior government official.
Just after the resignation was announced, a huge contingent of army troops were deployed around his official residence in Rawalpindi, an army garrison town near Islamabad, the capital. His associates said he will stay there for some time before moving to a private residence in Islamabad.
In a statement, U.S. Secretary of State Condoleezza Rice expressed support for Pakistan's civilian government "in its desire to modernize Pakistan and build democratic institutions." The statement also called Mr. Musharraf "a friend to the United States and one of the world's most committed partners in the war against terrorism and extremism."
Two questions remain unanswered: whether Mr. Musharraf will enjoy immunity from prosecution, and whether he will stay in Pakistan. Asif Ali Zardari, leader of the Pakistan People's Party, the senior coalition partner, has agreed in principle to amnesty, according to a senior party official. Mr. Zardari, the widower of slain former Prime Minister Benazir Bhutto, wants the ex-president to leave Pakistan, rather than loom over the new government.
The junior coalition partner, the Pakistan Muslim League (N) led by Mr. Sharif, is expected to push for charging Mr. Musharraf with crimes while in office. "We have to allow for the law to take its course," said Ahsan Iqbal, a spokesman for Mr. Sharif's party. A final decision on Mr. Musharraf's indemnity will be made in meetings between Messrs. Zardari and Sharif, aides said.
Mr. Musharraf's legal advisers have argued that under Pakistan's constitution, the president should be immune from prosecution for actions taken while in office. "They have no legal case," said Muhammad Ali Saif, a top lawyer for Mr. Musharraf said. "They've been bluffing."
With Mr. Musharraf gone, the governing coalition's first major test is a self-imposed 72-hour deadline for reinstating judges Mr. Musharraf dismissed late last year, including Chief Justice Iftikhar Mohammed Chaudhry.
Messrs. Zardari and Sharif appear divided on the reinstatement. Mr. Zardari has publicly opposed Mr. Chaudhry's restoration, saying the former chief justice had refused him bail while Mr. Zardari was in jail facing corruption charges. Mr. Zardari also fears the chief justice might reopen those corruption cases, which were dropped in a deal with Mr. Musharraf last year that brought Mr. Zardari and Ms. Bhutto back to Pakistan from exile.
Replacement Sought
The other immediate problem is who will replace Mr. Musharraf as president.
Mr. Zardari would be a controversial candidate given the corruption charges he faced in the past, although he denies any wrongdoing. His candidacy may not be acceptable to Mr. Sharif or the military, which remains the most powerful institution in Pakistan.
Other candidates include Mr. Zardari's sister, Farayal Talpur, who was recently elected to Pakistan's national assembly in the seat once held by Ms. Bhutto. Other Pakistan People's Party officials mention Aftab Mirani, a former defense minister.
The governing coalition has been unsuccessful beating back a resurgent Islamic insurgency, which has spilled into towns and cities from the country's tribal areas on the border with Afghanistan. Clashes have continued in the Northwest Frontier Province, despite efforts to strike peace deals with militant leaders.
Mr. Musharraf's speech was an attempt to secure his historical legacy. He pointed to new water projects, a women's-rights bill and a new art museum in Islamabad. In response to those who said he stood against democracy, he said he introduced elections at the village level. He left unsaid what he will do and where he will go after he steps down.
Write to Peter Wonacott at
peter.wonacott@wsj.com 
Musharraf Expected to Resign Pakistan Presidency -
15th August 2008
