Pakistani PM Gilani says terrorism main priority

By Kamran Haider

ISLAMABAD (Reuters) - Pakistan's new government will negotiate with militants who lay down their arms, Prime Minister Yousaf Raza Gilani told parliament on Saturday, as he laid out priorities for his administration.

Poverty and unemployment would also be on top of his government's agenda, Gilani said after he secured the unanimous approval of the National Assembly without a vote of confidence after the opposition said it supported him.

"Terrorism and extremism are our greatest problems. They have put the country in danger. Therefore, it is our first priority to bring peace to the country and fight terrorism," said Gilani, a top official off assassinated former prime minister Benazir Bhutto's party.

"We're ready to talk to all those who give up arms and adopt the path of peace," he said.

Bhutto's party won the most seats in a February 18 parliamentary election and is forming a coalition with the party of another former prime minister, Nawaz Sharif, and two smaller parties.

The election was a setback for President Pervez Musharraf, with the main party that backs him coming a poor third.

Musharraf has been a steadfast U.S. ally since the September 11 attacks but his support for the U.S.-led campaign against Islamist militants has been deeply unpopular with many Pakistanis.

Leaders of the new coalition have spoken of the need to open talks with militants, raising questions about Pakistan's security strategy with Musharraf's influence on the wane.