U.S. to review aid to Pakistan

By Simon Cameron-Moore and Zeeshan Haider

ISLAMABAD (Reuters) - Pakistan police rounded up hundreds of people on Sunday after President Pervez Musharraf defied U.S. pressure and widespread domestic opposition by imposing a state of emergency.

Washington said it would have to review billions of dollars of financial aid to Pakistan after Musharraf declared a state of emergency on Saturday, thwarting U.S. hopes of a transition to civilian-led democracy.

"Obviously we are going to have to review the situation with aid, in part because we have to see what may be triggered by certain statutes," said U.S. Secretary of State Condoleezza Rice, who had advised against emergency rule in two phone calls to General Musharraf on Oct 31.

Washington has given Islamabad, a major ally in its battle against al Qaeda, around $10 billion over the last five years.

Prime Minister Shaukat Aziz said national elections, due in January, might be delayed by "up to a year", but declined to say how long the emergency would last. Between 400 and 500 people were being detained, he added.

Musharraf, who seized power in a coup in 1999, said he acted in response to rising Islamist militancy in nuclear-armed Pakistan and what he called a paralysis of government by judicial interference.

"I cannot allow this country to commit suicide," he said in an address to the nation, after suspending the constitution and purging the Supreme Court of judges opposed to him.

Most Pakistanis and foreign diplomats believe his main motive was to prevent the Supreme Court invalidating his October 6 re-election by parliament while still army chief.