• The constitution is suspended.
• Justice Abdul Hameed Dogar replaced Chief Justice Iftikhar Chaudhry.
• Provincial and federal assemblies in tact.
• Shaukat Aziz: General Elections may be delayed (for up to one year).
• Judges across the country have been sworn in under the PCO.
• Opp. leaders arrested (e.g. Atizaz Ahsin, Javed Hashmi, Imran Khan, and Asma Jehangir).
• Benazir Bhutto has stated that she is willing to work with Musharraf.
• Private news outlets are now under strict operating guidelines.
• The country remains relatively calm.

Intel Forecasts Validated
Last week, we had reported that a major decision would be made on November 1st relating to the Musharraf government. Both our sources and Dawn are now reporting that the decision to declare a state of emergency was made on November 1st. Back in September, we had also stated that there moves were afoot by the government to force then-Chief Justice Iftikhar Chaudhry’s resignation and that he would be out of office in a month; a month and a half later, Chaudhry finds himself out of a job.

What’s next?
As of yesterday, sources are reporting that the state of emergency will be short lived and that Musharraf will remove his uniform. If this is going to be Musharraf’s strategy, it’s a wise one. Keeping emergency rule short and removing his uniform shortly thereafter, will dampen opposition to him and preempt the organization of a large-scale protest movement that he will not be able to contain. He will also have accomplished his goal of removing one of the biggest thorns in his side: f0rmer Chief Justice Iftikhar Chaudhry.

As of now, the opposition is in disarray with much of its leadership and nearly 500 activitsts already detained. Though talk of emergency rule had reached a fever pitch the day before, no one believed Musharraf would follow through thinking that move would be political suicide. Interestingly, the public for the most part has been quiet. But even if Musharraf is able to ride this out and successfully transition back to democracy as a civilian president, we do not foresee him completing his second 5-year term.

In the coming days, there may be full-on military activity in Pakistan’s northwest, specifically Swat and North Waziristan. Militants in the area may already be expecting this and are likely looking to come to an accord with the government. This was exhibited with the release today of the remaining 250 Pakistan Army troops that had been captured in late August. According to our sources, Pakistan currently has over 100,000 troops in the northwest. In addition to two heavy infantry divisions, two more infantry divisions have been moved in to the region with the intention of retaking each tribal agency/provincial district one at a time.

International Reaction
International reaction has almost universally been one of “disappointment” and “concern.” In reality however, these public statements are just lip service. For countries whose opinion actually matters for Pakistan — namely the United States and China — the primary concern was and still is the war on terror.

The United States. The White House termed Musharraf’s move as “disappointing” calling for him to remove his uniform and hold elections in January. Secretary of State Condoleeza Rice echoed similar sentiments calling for calm and a swift return to constitutional order. She also said that financial assistance to Pakistan would be reviewed. To retierate, these are all face saving statements for consumption by the domestic US audience and international community. The Bush administration cannot be seen as supporting anti-democratic moves. It should also be remembered that the Vice President’s office runs all Pakistan-related foreign policy, not the State Department.

However, the most noteworthy and underreported statement came from the Pentagon stating that emergency rule would not effect US military support for Pakistan. Behind closed doors, all that matters for the Bush administration and other Western governments is that the war on terror continue full force and the Pentagon statement highlighted that.

China. China is Pakistan’s closest ally and largest benefactor, bar none. China has been mum over the last few months when its come to the state of affairs in Pakistan in line with their policy of domestic non-interference. After yesterday’s imposition of emergency rule, the Chinese came out and stated that they were “concerned,” but that the Pakistani government and people were capable of solving their own problems. So long as the government in Islamabad enacts policies that will not destabilize the region or specifically China’s own troubled Xinjiang province, the Chinese will continue to support Pakistan and in this case, Musharraf.

Musharraf’s Address: “Pakistan First”
IB readers can view Musharraf’s nearly hour long address to the nation last night below as well as in our newly added media section. Most of the address is in Urdu but beginning at 36:30, he speaks briefly in English for his “friends in the West.” To quickly summarize, Musharraf criticized the Supreme Court’s “judicial activisim” saying that it impeded on the government’s ability to prosecute the war on terror and manage the economy. He also went on to say that terrorists had become too emboldened and that the government needed to be able to take swift action against them; thus he had taken this action for emergency rule.

Resources

• Text of the Proclamation of Emergency
• Text of the Provisional Constitutional Order (PCO)
• Text of Musharraf’s first PCO in October 1999
• Text of the former Supreme Court Order Voiding the PCO

The Countdown Begins
Musharraf stepping down from his post as Chief of Army Staff (COAS) would mark an interesting turn of events, especially in light of the recent attempt on Benazir Bhutto’s life and strife in the country’s border regions. One would have reasoned that given the level of instability, Musharraf would have dragged his feet on shedding his uniform, but instead, we’re potentially witnessing the opposite. He may step down as COAS to facilitate a Supreme Court verdict in favor of his presidential candidacy; though it’s unlikely that the Supreme Court will rule against Musharraf, lest it’s seeking to trigger a governmental crisis.

Musharraf’s expedited schedule can also be interpreted as a vote of confidence for Gen. Ashfaq Kayani, Musharraf’s successor in the army. Musharraf would be signalling that he trusts Kayani enough to run the army without fear of being ousted or betrayed, though many in the opposition have long been anticipating the day that Musharraf doffs his uniform as it has been his only source of power. If and when he does remove his uniform, Musharraf will rely more than ever on the loyalists he has strategically placed throughout the military and the government.

Shaukat Aziz to Remain Premier
Sources are also indicating that the powers-that-be intend for Prime Minister Shaukat Aziz to remain prime minister after general elections. They describe Aziz as being a “non-controversial” public figure and cite his proven track record in managing the economy. They go on to categorically state that Benazir Bhutto will not be the next prime minister.

This news, coupled with our previous reporting that Musharraf will not be abandoning his current civilian allies (read: the Chaudhries), rules out a major power-sharing agreement between Bhutto and Musharraf. It is likely that government intends to continue to dangle the idea of a power-sharing accord in front of Bhutto as a means of keeping both her and the public occupied while it prepares for general elections.

Though there may not be a major power-sharing agreement between Musharraf and Bhutto, we do foresee them coming to some sort of political accommodation along with the rest of the players on Pakistan’s scattered political field.

The government should be wary though not to underestimate Bhutto’s popularity or political abilities – she may just end up surprising everyone.

DECEITFUL DEALINGS EXPOSED?
The Jeddah visit proves to be a very interesting development especially when viewed in the context of the “chatter” that we’ve been picking up on from some of our sources. We’ve consistently heard over the last week that President Musharraf, having won his re-election bid with the tacit support of Benazir Bhutto, is abandoning his deal with her. He is allegedly banking on the Supreme Court to strike down the National Reconciliation Ordinance (NRO) which grants Bhutto, among others, amnesty from pending criminal charges. And while the delegitimized Bhutto will not be returning to Pakistan, Nawaz Sharif will. At the time, this scenario was both highly speculative and implausible for many reasons and as a result, we left it unreported.

The first mention of this potential outcome came shortly after Pakistan Muslim League (Q) president, Chaudhry Shujaat Hussain, appeared at a news conference with Prime Minister Shaukat Aziz early last week saying that the NRO was a ploy and that Bhutto had lost at a political game. Though some knowledgeable individuals claimed that Hussain had been told by Musharraf to say what he did, it was far more likely that the comments reflected an attempt to throw a wrench in the Musharraf-Bhutto deal. It was reasoned that the Chaudhry cousins, who campaigned hard for Musharraf during the recent presidential elections, were trying equally hard to maintain their relevancy.

A few days later however, Musharraf made the suggestion during a TV interview that Bhutto delay her return. This, despite an almost immediate rejection of the idea from Bhutto, coupled with news of the Jeddah trip, led us to question whether there was any credence to what we had been hearing.

COMPULSIONS FOR MOHTARMA AND MUSHARRAF
Having re-evaluated our position, the aforementioned scenario forecast by some of our sources still remains improbable, though not as speculative, as the Supreme Court has agreed to review the NRO.

There is one major reason Musharraf cannot abandon a deal with Bhutto – the United States. The US has a high degree of vested interest in seeing the Musharraf-Bhutto deal come to fruition and has spent a great deal of political capital trying to make it happen. If Musharraf hopes to maintain the continued support of the US government — a major prop for his regime — he must remain committed to a power sharing agreement with Bhutto. There have already been some signs a la State Department commentary signaling that the American government may be distancing itself from Musharraf.

Bhutto on the other hand cannot afford to not return to Pakistan on October 18th as we’ve stated in the past. This is Bhutto’s last chance to return to power and redeem herself. If this window of opportunity closes, she will be relegated in history as yet another failed ruler in Pakistan’s long line of over-hyped disappointments. For her credibility to stay in tact, she must return to Pakistan on the 18th regardless of whether or not the Supreme Court strikes down the NRO.

A FRAGMENTED FRAMEWORK
So where does the Jeddah visit fit into all of this? The delegation likely flew to Jeddah to discuss with Nawaz Sharif the terms of his and/or Shahbaz Sharif’s return to Pakistan. Since his deportation back to Saudi Arabia, the Saudis have kept Sharif on a short leash. If he hopes to leave Saudi Arabia, it will have to be with Musharraf’s consent.

One may question what incentive Musharraf has to allow either of the Sharif brothers to return to Pakistan. The truth is that though Musharraf is beholden to the Americans to make a deal with Bhutto, he doesn’t have to guarantee that she or anyone else is all that powerful. By forcing the PPP and PML(Q) into a coalition government all the while re-activating the PML(N) through the return of its leadership, Musharraf would be creating a fractured political environment with multiple, nearly co-equal players. Under the probable guise of national reconciliation, he would effectively be neutralizing the Chaudhry’s, the Sharif’s and Bhutto by playing them off one another. The very fact that the Jeddah visit was made by Army officials and not civilian political operatives makes us believe that the Chaudhry’s were not to have any say in or knowledge of negotiations with Sharif.

On the surface, it may appear as though Musharraf is conceding power to the country’s politicians, but the reality is that he’s ensuring, with the Army’s backing, that he will remain the single most powerful player in Pakistani politics.

How the Supreme Court acts in the coming days is anyone’s guess. One thing is certain though – Musharraf is proving to be a very deft politician.