According to local media reports, the decision to drop corruption charges against Bhutto, and pave the way for a power-sharing deal, was made during a late-night meeting attended by the country's president, Prime Minister Rashid Ahmed and government representatives.
The deal would also give an amnesty to all political leaders occupying office between 1988 and 1999, including ex-premier Nawaz Sharif, deported from Pakistan in September.
The decision was taken on the eve of presidential polls slated for Saturday. In line with the Constitution, the president will be elected by members of parliament and provincial assemblies (parliaments). To win re-election, Musharraf needs a majority vote, which is assured by his Pakistan Muslim League party.
The country is also due to hold general parliamentary elections soon after the presidential polls, however no official date has yet been fixed. Bhutto, who leads the Pakistan Peoples Party (PPP), has announced her plans to run for parliament, as well as her ambitions to become prime minister. She is currently in London, and plans to return home on October 18
Benazir Bhutto is the daughter of deposed premier Zulfikar Ali Bhutto, the founder of the PPP, who served as the president of Pakistan between 1971 and 1973, and as prime minister between 1973 and 1977. He was hanged in 1979 by the country's then military ruler, General Muhammad Zia-ul-Haq, allegedly for sanctioning the assassination of a political opponent.
