ISLAMABAD: Pakistan's two main opposition parties and one time rivals have joined hands to form a PPP-led coalition government putting President Pervez Musharraf in a precarious position for the first time in nine years. PPP co-chairman Asif Ali Zardari and PML-N leader Nawaz Sharif announced at a joint press conference after crucial three-hour negotiations that the two parties will work together for a "National consensus government."

But the two parties did not announce a Prime Ministerial candidate. Sharif, who was overthrown by Musharraf in a coup in 1999, declared "the sooner he (Musharraf) accepts the verdict it is better for him", putting at the stake the President's survival. The leaders discussed the modalities of government formation, two days after the PPP, which emerged as the single largest party with 87 seats, and PML-N together got a majority, bagging 153 seats in a House of 272.

"We have agreed on a common agenda. We will work together to form a government together in the Centre and in the four provinces," Sharif said, adding the two parties have overcome differences on restoration of judiciary. The announcement came as a setback to Musharraf who was hoping to wean away PPP, from the PML-N to have truck with the defeated PML-Q in forming a new government. "We will ensure that you complete a full five year term," said Sharif looking at Zardari, who has emerged as the kingmaker in Pakistan's return to democracy, as the two leaders sat on ornate-gilt edged chairs at Zardari House.

"In principle, we have agreed to stay together. We intend to strengthen Pakistan together," said Zardari. Zardari said there were a "lot of grounds to cover" between the two parties but said "Inshallah (God willing) we will be meeting off and on. In principle we have agreed to stay together." The coming together of Zardari and Sharif may spell doom for Musharraf, who has rejected strident calls by the opposition parties for his resignation. Musharraf's presidency ends in 2011. "We are trying to form a national consensus government," said Zardari. Sharif said the two parties had overcome their differences over his demands for the immediate restoration of the sacked chief justice Mohammed Iftikhar Choudhry.

The differences had cast a shadow on the parleys. "In principle there is no disagreement on the restoration of the judiciary. We will work out the modalities in Parliament," the two-time premier said. Zardari has insisted that the Parliament should take a view on bringing back the deposed judges. Zardari said the coalition would not involve any parties from the alliance that backed Musharraf in the present parliament saying "We are not looking at pro-Musharraf parties.

"We have come to the same position that we started this fight with, that we will be together in the struggle for democracy (and) we intend to stay together in parliament," said Zardari. "The future of democracy is within our grasp, we will strengthen parliament and democracy. We will work for Pakistan together and we will make a stronger Pakistan." Asked whether the new government would work with Musharraf, Sharif -- who has insisted in the past few days that the President should quit said: "You know my views.

The nation has given its verdict. It is from every nook and corner of Pakistan. The sooner he (Musharraf) accepts it, the better it is for him." Sharif read out a statement which said: "In principle there is no disagreement on the restoration of the judiciary. We will work out the modalities in the parliament." Zardari said the two leaders had agreed that the first action of the new parliament would be to pass a resolution seeking a UN-led inquiry into the assassination of his wife Benazir Bhutto. Sharif said "the sooner he (Musharraf) accepts the verdict the better it is for him."

Regarding the prime ministership, there were reports that Fahim Maqdoom of the PPP was the front runner but there is no official word on it. Sharif had also said that the PPP has the right to form the next government. "We have decided to work together for the interest of Pakistan, democracy and supremacy of democratic institutions, and rule of law in the country," Zardari said. "We intend to strengthen Pakistan together, we are not looking at pro-Musharraf forces.

I don't believe pro-Musharraf forces exist," Zardari said. Zardari said all of Pakistan's problems "can be solved by the political forces." Asked whether the PML-N would join the federal government or support it from the outside, Sharif said: "We will decide on that." Sharif said he and Zardari had also agreed to implement the Charter of Demands that the PPP and PML-N had signed some years ago when they launched a joint movement against Musharraf. Under this charter, the constitution of 1973 will be revived and the President's powers to dismiss elected governments will be scrapped. The two leaders also ruled out working with the PML-Q, which backs Musharraf and was routed in the February 18 polls.