Amnesty bill threatens Pakistani government split

ISLAMABAD (Reuters) - A proposed parliamentary bill offering an amnesty on corruption charges to Pakistan's president and other senior politicians could split the government after a key coalition partner said he would oppose it.

The National Reconciliation Order (NRO) was introduced by former President Pervez Musharraf in a bid to strike a power-sharing deal with former Prime Minister Benazir Bhutto, and is due to be floated in parliament this week.

Bhutto, as well as another former prime minister, Nawaz Sharif, were exiled abroad and reluctant to return because of a slew of corruption cases lodged against them until Musharraf introduced the amnesty law.

The law proposed dropping all graft charges against politicians and civil servants laid before October 1999 when Musharraf seized power in a military coup.

Bhutto was assassinated shortly after her return to Pakistan in 2007 and her husband, Asif Ali Zardari, became president the following year.

While Sharif and Zardari were coalition partners for a while, they later fell out, leaving Zardari heading a tenuous collection of smaller parties.

On Monday Altaf Hussain, leader of Muttahida Qaumi Movement (MQM) and a key ally, called on Zardari to quit over the issue.

"Altaf Bhai (brother) has suggested President Zardari resigns to save the system," Mohammad Anwar, a close Hussain aide, told Reuters.

"There are certain forces who wish to derail and destabilize the ongoing democratic process," he said, without elaborating.

Analysts said Hussain's suggestion showed a serious split in the coalition that could turn into a full-blown political crisis for the government.

The MQM's support is vital for Zardari's government as it lacks a simple majority in the parliament.

"It may be a bargaining chip but it has also the potential to create difficulties for the government and can even destabilize the government if it's pursued," said Hasan Askari Rizvi, a political analyst.

"It's a black law. It will earn (a) bad name for the democratic institutions of the country," Sharif told a news conference.

"We will not only forcefully vote against NRO if it's tabled in the parliament but will also mobilize public against it."

(Editing by David Fox and Jerry Norton)