Pakistan coalition talks may threaten Musharraf

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"We intend to stay together (to establish a government)," said Asif Ali Zardari, who led the Pakistan People's Party (PPP) to the most seats in Monday's election after his wife, former Prime Minister Benazir Bhutto, was assassinated on December 27.

Musharraf, who seized power in a 1999 military coup in the nuclear-armed nation and has been one of Washington's top Muslim allies against al Qaeda, is vulnerable after his supporters were defeated in the election but has said he is not ready to quit.

His critics say his efforts to cling to power have been a destabilising factor in a country already battling to stop attacks on its territory by al Qaeda and other militants. Neighbours and allies fear Pakistan is becoming more unstable.

U.S. President George W. Bush's administration has urged the next government to work with Musharraf and says Washington needs Pakistan, which borders Afghanistan where U.S. and NATO forces are fighting Islamist militants, as an ally.

On Thursday, Zardari held a first round of talks on forming a coalition government with Nawaz Sharif, leader of the party that came second in the election and the prime minister whom Musharraf overthrew in 1999.

Zardari told a joint news conference in Islamabad afterwards he wanted a broad coalition but one excluding the main party that backs Musharraf.

The PPP leader, who said on Wednesday parliament should decide whether it could work with Musharraf, was due to meet his party's newly elected parliamentarians on Friday.

Since returning from exile in November, a month after Bhutto, Sharif has made clear he would like to oust Musharraf.

"We will work together to form the government," Sharif told the news conference. "There is no issue of disagreement."

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