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(Update) Musharraf ally says talks could lead to exit

ISLAMABAD, Pakistan - The resignation of Pakistani President Pervez Musharraf with legal immunity is a key option being discussed in talks that are under way in an effort to avoid his looming impeachment, an ally of the embattled leader said Friday.

Another option being floated is reducing the presidency to a figurehead role, said Tariq Azim, a top official in the pro-Musharraf Pakistan Muslim League-Q party.

Asked if Musharraf had decided to quit, Azim told The Associated Press, "There are people who are advising him to avoid confrontation, but I don't think he has made up his mind."

Musharraf dominated Pakistan for years after seizing power in a 1999 coup, gaining favor from the United States after supporting it in the war on terror.

His rivals won February parliamentary elections, forming a ruling coalition that has sought to push the former army chief out of office and has largely sidelined him. Ruling coalition officials have said an impeachment motion could reach the Parliament as early as next week.

Azim said people on all sides generally agreed an impeachment battle would strain the country at a time when it faces critical challenges, such as a sinking economy and an emboldened militant movement.

"It is at the moment that Pakistan cannot afford confrontation," Azim said. "And it's obvious that the present government and President Musharraf cannot get along. So it is in the best interest of Pakistan that some way is found whereby this mode of confrontation can be changed or can be more conciliatory."

Musharraf's spokesman was not immediately available for comment.

Some of Musharraf's rivals may have a hard time granting him any favors.

Sheikh Mansoor Ahmed, a deputy secretary-general from the largest party in the ruling coalition, told The Associated Press that Musharraf's options were limited, and that he had to either quit or face impeachment.

"There is no other option for Musharraf," he said. He insisted that the coalition government would never accept Musharraf as even a ceremonial head of the state.

On Thursday, former Prime Minister Nawaz Sharif, who leads the second-largest party in the ruling coalition, said he opposed granting legal immunity for Musharraf. Sharif's party has previously said Musharraf should be tried for treason.

Sharif, whom Musharraf pushed out of power in his coup, alleged the president had violated the constitution and compromised the nation's sovereignty, a reference to Musharraf's alliance with the US in the war on terror.

"Should safe passage be given to someone who has done this to Pakistan?" Sharif asked an audience marking Pakistan's Independence Day. "He wants safe passage by breaking Pakistan's law. He wants safe passage by breaking Pakistan's Constitution. He is asking for safe passage by selling out Pakistan's sovereignty."

The pressure on Musharraf has been ramped up in recent days.

Three of Pakistan's four provincial assemblies passed resolutions this week denouncing the president and urging him to seek votes of confidence or resign. The resolutions have accused Musharraf of violating the constitution and gross misconduct.

Musharraf, who gave up his dual role as army chief late last year, has grown increasingly unpopular through his tenure.

Many Pakistanis blamed rising violence in their country on his partnership with the United States in the fight against extremism. His popularity hit new lows in 2007, when he ousted dozens of judges and imposed emergency measures in bids to avoid challenges to his rule.

As president, Musharraf has the power to dissolve the Parliament, but even his allies have advised him against taking such a controversial step.

Dissolving the Parliament also would require the support of the army, which has indicated it wants to stay out of politics. There have been no public signs that the army is coming to rescue its former chief

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