Pakistan's Bhutto urges Musharraf to quit army

By Zeeshan Haider

ISLAMABAD (Reuters) - Benazir Bhutto, self-exiled former prime minister of Pakistan, said on Friday she might reach some political deal with President Pervez Musharraf, but he should quit his role as army chief to foster true democracy.

Pakistan has been rife with speculation in recent weeks that Musharraf and Bhutto were overcoming their mutual distrust to forge a common front against religious conservative forces ahead of a general election later this year.

"We admit there are contacts because we want transparency, but we don't say the deal has been done," she told reporters in Dubai in a telecast carried by Pakistani networks on Friday

Bhutto said previous contacts had come to nothing, but added: "This time, there might be a deal and there might not be a deal."

However, she insisted Musharraf should fulfil his commitment to step down as army chief by the end of 2007 before any deal could be reached.

"A president in uniform and democracy cannot go together ... we want military to go back to barracks," Bhutto said.

Musharraf, an important ally in the U.S.-led war on terrorism, promotes a vision of "enlightened moderation" and Bhutto's liberal Pakistan Peoples Party is seen as his natural ally to counter the growing influence of religious hardliners.

Bhutto wants the government to drop corruption charges against her in Pakistan and abroad so that she can return home to lead her party.