Progress seen in Musharraf-Bhutto talks

President Gen. Pervez Musharraf and exiled rival Benazir Bhutto have moved closer to a deal that could see them share power and restore democracy to Pakistan, although key sticking points remain, Bhutto's party and the government said Tuesday.

The pact is also supposed to bolster Pakistan's fight against extremism _ a need underlined by twin suicide attacks Tuesday that killed at least 25 people and wounded 68 near the capital.

The bombings tore through a high-security area of Rawalpindi, the city where Pakistan's army has its headquarters. The deadliest blast devastated a Defense Ministry bus, killing 18 military and civilian employees.

Authorities suspected the attacks were linked to pro-Taliban militants near the Afghan border. The violence deepened the sense of crisis in Pakistan, already roiled by political uncertainty ahead of elections as Musharraf maneuvers to extend his eight-year rule.

Bhutto, a two-time former prime minister, met with two envoys of the military leader at her residence in the Arab emirate of Dubai on Tuesday, the latest round in a monthslong dialogue.

The negotiations are aimed at a deal to allow Musharraf, a key U.S. ally, to win a new five-year presidential term from lawmakers by mid-October while allowing the opposition leader to return to Pakistan and contest parliamentary elections due by January 2008.

The talks have been hampered by myriad legal complexities and a bitter rivalries, but both sides reported progress.

Bhutto spokesman Farhatullah Babar said they had made progress on holding elections but that issues including Musharraf's dual role as president and army chief and the balance of power between the presidency and parliament were unresolved.

"No agreement has been finalized, but I would say that discussions resumed," Babar said. "Some progress was made, for which dialogue will continue."

Information Minister Mohammed Ali Durrani also said "the process of negotiations has started to move forward."

One negotiator, Makhdoom Amin Fahim, vice president of Bhutto's Pakistan People's Party, told Dawn News TV they had laid out all their demands for the "restoration of democracy." He could not predict when the next talks would take place.

"The important thing is that the time is running very, very fast, and time will not wait for anybody," he said.

Musharraf is seeking re-election by lawmakers between Sept. 15 and Oct. 15.

Babar said that the two sides had yet to discuss constitutional amendments that experts say are needed to avoid legal problems surrounding Musharraf's eligibility for a new term as president and to allow Bhutto to seek a third term as prime minister.

Such changes would require parliamentary votes supported by both Bhutto's party and the ruling coalition.

The deal also faces internal opposition: People's Party lawmakers who feel that a deal with a military leader would tarnish their democratic credentials, and leaders of the ruling Pakistan Muslim League-Q party, who could be sidelined by any agreement with Bhutto.

Complicating the political scenario, Nawaz Sharif, the prime minister ousted by Musharraf in his 1999 coup, plans to return from exile Sept. 10, despite threats that he could be re-arrested. He says he will challenge Musharraf's bid to extend his rule.

Bhutto, who fled corruption allegations in 1999, has also said she will return in coming weeks, regardless of whether she reaches a deal with Musharraf.

Musharraf has dominated Pakistani politics since seizing power eight years ago. He became a key U.S. ally after the Sept. 11, 2001, attacks.

But his authority has waned since a botched attempt in March to fire the country's top judge triggered protests and widespread calls for an end to military rule.

Washington continues to praise Musharraf, but is also pressing for a broader-based government that can strengthen Pakistan's efforts against the Taliban and al-Qaida.

Militants have stepped up attacks in recent months, particularly in Pakistan's northwestern frontier, where the state has little control.

Violence has also occurred in the federal capital, Islamabad, and Rawalpindi, about seven miles away, where Tuesday's bombings took place.

Arif Sultan, a survivor of the bus attack, told AP Television News the bomb went off when the vehicle was waiting in traffic and filled it with flames.

"The roof of the bus was blown away. Pieces of other people's flesh hit my head and covered my clothes," he said from a hospital bed, where he was being treated for a minor head injury.

Interior Ministry spokesman Javed Iqbal Cheema said initial investigations indicated the bombings were suicide attacks. He said authorities suspected the involvement of a militant network that had links in Pakistan's tribal areas.

_____

Associated Press writers Stephen Graham, Munir Ahmad and Sadaqat Jan contributed to this report.