President Asif Ali Zardari threw his weight on Monday behind beleaguered Prime Minister Yousuf Raza Gilani against any attempts to destabilise his government after a key partner quit the ruling coalition. The opposition has not yet sought a no-confidence vote against Gilani in parliament but analysts said that was the biggest worry for the prime minister as he scrambled to shore up support.
The political upheaval comes at a time when the United States has increased pressure on Pakistan to go after militant groups to help it turn around the faltering war in Afghanistan. It adds to the Pakistani government's problems at home as it struggles to meet demands placed on it by the International Monetary Fund, including politically sensitive tax reforms, in return for the remaining tranches of an $11 billion loan.
"(Zardari) has full confidence in Prime Minister Yousuf Raza Gilani and solidly stands behind him in foiling any attempt to destabilise the coalition government," presidential spokesman Farhatullah Babar said in a statement. The president and prime minister are from the same political party and both would be loath to see an early general election. The country's main stock index ended 1.44 percent lower, reflecting concerns over the stability of the government, traders said.
The fall in the Karachi Stock Exchange contrasted with a rise in stocks elsewhere in Asia. The MSCI index of Asian shares outside of Japan rose 0.9 percent on Monday, although several markets were closed for a holiday. The government is 12 seats short of the number it would need to survive a no-confidence vote. "From this point onward, the government will be on crutches. The no-confidence vote is a threat for it," said Ahmed Bilal Mehboob, executive director of the Pakistan Institute of Legislative Development and Transparency.