KEY POINTS:
Severely weakened by a crushing election defeat and facing the prospect of possible impeachment, Pervez Musharraf has reportedly resigned himself to serving a "ceremonial" role as the country's President.
Senator Joe Biden, chairman of the United States Senate Foreign Relations Committee and part of an American delegation that met with Musharraf, said the President appeared to have accepted the reality of the election result, which saw his parliamentary allies soundly defeated.
"I don't think he is going to resign ... my impression is that he was prepared to retire to being President, which he pointed out to us is ceremonial," said Biden.
In the aftermath of the election, which saw the Pakistan People's Party (PPP) and the Pakistan Muslim League-N (PML-N) secure sufficient seats to form a majority government together, officials from the two parties have embarked on a frantic series of backroom dealings to stake out positions.
Asif Ali Zardari, head of the PPP, is due to meet in Islamabad with Nawaz Sharif, leader of the PML-N, for face-to-face talks to discuss a coalition.
Zardari, the widowed husband of Benazir Bhutto, indicated his party was unlikely to look to form a coalition with the involvement of the Pakistan Muslim League-Q (PML-Q), aligned to Musharraf, saying: "As the largest political force of the country, we demand that we be allowed to make the government.
"For now, the decision of the party is that we are not interested in any of those people who are part and parcel of the last government."
In the Punjab capital, Lahore, Sharif repeated his demand that Musharraf stand down. "He would say, 'When people would want, I will go'. Today the people have said what they want."
- INDEPENDENT