KEY POINTS:
Pakistan's Supreme Court last night dismissed challenges to military president Pervez Musharraf's bid to seek re-election, clearing the way for an expected win in a vote next Saturday.
Despite the ruling, nuclear-armed Pakistan faces months of uncertainty as Musharraftries to keep control of a country whose support for the United States is seen as crucial to the success of Western efforts to stabilise Afghanistan and battle al Qaeda.
The judges voted 6-3 to reject challenges to the President's running for re-election while remaining head of the military.
Anti-government lawyers and opposition supporters outside the court shouted their outrage after the decision was announced.
But financial analysts said investors on Pakistan's stock market were expected to welcome the decision in favour of Musharraf, who came to power in a 1999 coup.
"The market should react very positively to this decision as a key element of uncertainty has been removed," said Asif Qureshi, head of research at Invisor Securities in Karachi.
Investors are keen to see Musharraf continue policies that have produced strong growth in the past few years and made the Karachi Stock Exchange one of the region's top performers.
An electoral college comprising members of the National Assembly, Senate and provincial assemblies will vote for a president before the assemblies are dissolved for a general election due by mid-January.
Musharraf has vowed to quit the army, his main source of power, soon after winning another term. His ruling party is expected to suffer heavy losses in the general election.
The court heard petitions challenging Musharraf's right to hold the posts of president and army chief, the legality of being elected in uniform, and whether he can get a mandate from the outgoing assemblies.
Had the court blocked his re-election, analysts say he might have imposed emergency rule or even martial law.
Musharraf submitted his nomination papers to the Election Commission on Thursday.
An alliance of opposition parties announced in Peshawar its members would resign from assemblies next Tuesday in protest against Musharraf's re-election bid.
- Reuters
