Tasks for Zardari
By Farhan Bokhari and Daniel Dombey

Published: September  5 2008 03:00 | Last updated: September  5 2008
03:00

Less than a year ago, Asif Ali Zardari would have hardly been considered
a likely candidate for high office. His image was that of a flamboyant
polo-playing former businessman who had to fight allegations of
corruption and shake off the nickname of "Mr Ten Per Cent".

But tomorrow he is widely expected to become the next president of
Pakistan - a nuclear-armed state with a raging insurgency on its hands
and al-Qaeda safe havens on its territory. As Pakistan's strategic
importance to the west grows ever greater, he is set to become a central
figure in America's war against terror.

The nightmare for Washington is that Pakistan's nuclear weapons fall one
day into the hands of Islamist extremists. Among its very highest
priorities are preventing al-Qaeda from planning another September
11-style attack from its Pakistani base and stopping support for the
Taliban in Pakistan's border regions from fatally weakening Nato's
efforts in Afghanistan. But in Pakistan, where civilian power has often
been constrained and where anti-American sentiment is on the rise, there
may be real limits to Mr Zardari's willingness or ability to co-operate
with such an agenda.

The 53-year-old's unlikely rise came after the assassination of his
wife, Benazir Bhutto, plunged him into the heart of Pakistani politics
last December as co-chair of her Pakistani People's party, together with
their 19-year-old son Bilawal.

On Tuesday, Mr Zardari was reminded once more that the risks politicians
face in Pakistan are far from just electoral, when shots were fired at
the bullet-proof car of Yusuf Raza Gilani, prime minister. No one was
hurt but the attack on the prime minister's well-protected motorcade was
another pointer to how Pakistani leaders remain vulnerable to a bloody
backlash by Islamic militants who oppose any government support for the
US and its aims.

Parliamentary elections in February, in which the PPP emerged as the
biggest party, and the subsequent marginalisation of Pervez Musharraf,
long Pakistan's US-backed ruler, gave Mr Zardari real power. Now the
highest office in the land is his for the taking, thanks to Mr
Musharraf's resignation last month under heavy pressure from the
civilian politicians.

The PPP does not have a majority in the federal parliament on its own.
But Mr Zardari has won support from regional political parties,
including a bloc of Islamists as well as independent candidates. That
should net him well over half the required votes from the electoral
college of 700 federal and provincial MPs. Although he will not have the
authority of his late wife, the leading PPP figure for three decades, Mr
Zardari is eager to emerge as a unifying figure in a country in which
militancy is on the rise. "Our politics is aimed at saving Pakistan from
disintegration," he said in remarks published in the Pakistani press on
Wednesday.

His opponents see things differently. "If, God forbid, Mr Zardari
becomes the president, there are enough controversies over him that
would make him a divisive figure to lead this country," says Mushahid
Hussain, a presidential contender from the Pakistan Muslim League-Quaid
e Azam (PML-Q), the party previously loyal to Mr Musharraf. "Given the
challenges we face as a country, we need national unity rather than
disunity. Zardari should be the last man to become president."

Nor do those who question Mr Zardari's fitness for office refer just to
the past allegations of corruption - which his friends say have never
been conclusively proved. In instances where he has been sentenced,
there were sufficient grounds to enter an appeal in a higher court, Mr
Zardari's friends add. A Financial Times investigation last month
revealed he had submitted documents to a court in the UK citing
psychological problems such as dementia, major depressive disorder and
posttraumatic stress disorder. Mr Zardari used the medical diagnoses to
argue successfully for the postponement of a now-defunct English High
Court case in which Pakistan's government was suing him over alleged
corruption.

Wajid Shamsul Hasan, high commissioner to the UK and a friend of Mr
Zardari, says the concerns about his psychological health are
exaggerated and stem from the days when he was imprisoned in Pakistan,
tortured and threatened with assassination. "His doctors have declared
him medically fit to run for political office and free of any symptoms,"
he says.

Still, any leader, no matter how fit, might find it difficult to
maintain a grip on Pakistan, not least because of its political
instability and the still unclear dividing lines between civilian
authorities and the military that has run the country for most of its 61
years as an independent state.

"The real fear in Washington is that this sense of instability and
fragility will impede any progress," says Daniel Markey, a former US
official now at the Centre on Foreign Relations in Washington. "There is
an openness to working with Zardari, but there is a scepticism in terms
of what he is capable of producing . . . There is a question about
anyone in that role, because it's such a difficult country to govern."

Mr Zardari will have to contend with opposition from Nawaz Sharif, his
former coalition partner who leads the Pakistan Muslim League-Nawaz
(PML-N), the second biggest party. Mr Sharif, a veteran practitioner of
politics in a way that Mr Zardari is not, left the government last month
and has set out more popular positions than his rival, from his call for
Mr Musharraf to be ejected to signalling greater wariness about working
with the US.

An even more immediate constraint on the next president's power will be
the army. It remains the most powerful institution in the country
despite the avowed intention of Gen Ashfaq Kiyani, the chief of staff
who took over that role from Mr Musharraf last November, to distance the
military from politics. The government has yet to wrest control of
Pakistan's ISI intelligence agency from the army, despite one attempt
and US accusations - furiously denied by Pakistani officials - that the
ISI was involved in the bombing of India's embassy in Afghanistan in
July.

Furthermore, while the army has conceded the political sphere to the
country's civilian politicians, the battle against Islamist militants is
very much in the military domain. "Gen Kiyani may choose to be
apolitical but the army is a powerful body because it is the only
institution which can make a difference to this war," says a western
defence official based in Islamabad.

In the past month, the Pakistani military has stepped up strikes in
regions reputed to harbour militants allied to al-Qaeda and the Taliban,
killing up to 400 of them by some estimates. "Pakistan depends so much
on the US and Pakistan's position in economic terms is so vulnerable
that the option of turning back from this effort is just not going to be
on the table for Mr Zardari," says Hasan Askari Rizvi, a security and
political affairs expert.

Mr Zardari is also all too aware that any attack against the US planned
and executed on Pakistani soil could bring massive retaliation. But
there are limits to the extent to which Mr Zardari - or any Pakistani
leader - is likely to co-operate. Doubt has also been cast on occasion
at the commitment of the army to curbing Islamist forces. "The recent
campaign by the Pakistani military is impressive. But can they sustain
it? That's the key question," says a western ambassador in Islamabad.

US officials show impatience at a Pakistani ceasefire for the holy month
of Ramadan that began this week, seeing the halt to hostilities as part
of a failure to get systematically to grips with the insurgency. Mr
Markey says the military relationship is settling down into one in which
the US targets al-Qaeda and Taliban suspects in Pakistan with air
strikes, complementing Pakistani military efforts.

But even this is controversial within the country: one such strike in
June killed several of Pakistan's Frontier Corps militia. On Wednesday,
moreover, Pakistani officials say at least 15 people were killed when
Afghan-based US troops attacked homes of suspected militants in Angor
Adda, a town near the Afghan border. This first use of ground troops on
Pakistani soil indicated the uneasy state of relations and drew a formal
protest from Islamabad.

To many Pakistanis the battle against Islamist militants is Washington's
war, not one in which their nation should be involved. "I am torn
between PPP - the liberal party - and my opposition to the US war
against terror," says Nazeer Alam, a postal worker who identifies
himself as a second-generation PPP supporter. "The PPP offers a hope for
the future, but America is Pakistan's enemy and the enemy of Islam," he
adds. "If Asif Zardari is going to be sponsored by America, what good
will he bring to Pakistan?"

Such divisions remain perhaps the biggest difficulty for Mr Zardari as
he prepares to take on the presidency. Whatever his personal frailties
may be, and no matter exactly how power is shared with the military, he
like any other prospective Pakistani leader will have to steer a tricky
path between helping curb world terrorism and avoiding inflaming
domestic opinion.

The presidency would "present the biggest challenge of his lifetime,
especially the fight against hardline groups", says Talib Rizvi, a
leading lawyer and a friend of Mr Zardari's. "Unlike what he is used to
in polo, he is in for riding a very wild horse."

Economic doldrums

The Pakistani rupee has fallen almost 25 per cent against the dollar
since the start of the year, in a setback to government efforts at
stabilising an economy beset by rising inflation, diminishing foreign
currency reserves and a fall-off in inward investment, writes Farhan
Bokhari .

"There is a lot of uncertainty all around. There is no investment
flowing in. Unless the situation improves rapidly, the decline will
continue," says a senior treasury official at a Pakistani bank.

Pervez Musharraf's nine-year tenure as president saw high economic
growth and unprecedented privatisation as foreign investment flowed into
the country, supported by as much as $10bn (£5.6bn, €6.9bn) in US
aid. For Asif Ali Zardari, his presumed successor, US largesse will be
especially important in the face of an increasingly moribund economy.

Consensus forecasts are for gross domestic product growth to slow this
year to 4.8 poer cent from 6.4 per cent in 2007. "There is a growing
sense that unless the political uncertainty is totally reversed,
investors will not return to Pakistan," says Shuja Rizvi of Karachi's
Capital One Securities, a brokerage house.

Last month, officials at the Karachi Stock Exchange took the
unprecedented step of freezing share prices at a level that was declared
the floor below which they would not be allowed to drop. This followed a
fall of almost 36 per cent in the KSE-100 index from its April peak.

Inflation has reached a record 25 per cent. There is evidence of a
growing street outcry against the government over the economic
direction. "After militancy, the economy is the biggest political issue"
says a western ambassador.

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