Pakistan set for presidential polls

ISLAMABAD, Sept 5 (Agencies) Pakistani legislators are preparing to vote for a new president to replace Pervez Musharraf. Election will be held today. brPakistan's new president, almost certain to be the widower of Benazir Bhutto, will have to contend with a host of critical problems including militant violence and an economy in crisis.brHe faces two political candidates.brSaeed Zaman Siddiqui, a former supreme court chief justice, is the candidate backed by Nawaz Sharif, a former prime minister and leader of the Pakistan Muslim League N party.brInvestors, longing for an end to political uncertainty that has helped drag stocks and the rupee down, hope Saturday's presidential vote by members of the two-chamber parliament and four provincial assemblies will usher in a period of stability.brBut the chances of that appear slim, not least because of militant violence spilling out of the northwest that this week apparently brought an assassination attempt on Prime Minister Yousaf Raza Gilani.brAnalysts say an election win by Asif Ali Zardari, the controversial husband of former prime minister Bhutto, is virtually a foregone conclusion.brZardari was thrust into the centre of politics by his wife's assassination on December 27, and then to the centre of power by a February parliamentary election victory by their Pakistan People's Party (PPP).brHis decision in August to begin impeachment proceedings against former president Pervez Musharraf led to the latter's resignation, and cleared the way for Zardari to win the top job.brBut political uncertainty, exacerbated by a split in the PPP-led coalition last month, security worries and a sagging economy have sapped investor confidence and dragged Pakistan's main stock index down 34 percent this year.brThe index rose 1 percent on Friday, partly helped by optimism Saturday's vote will bring some political clarity. The rupee has lost 20 percent to the dollar this year but firmed to 76.4050.brPakistan's dwindling foreign exchange reserves, widening current account deficit and sliding currency could result in a ratings downgrade as doubts mount over its ability to meet external debt obligations.brBut it will probably avoid sovereign debt default as its stability is such an important geopolitical factor institutions such as the International Monetary Fund will eventually help it meet obligations, analysts say.brMeanwhile, Pakistan's law minister says three Supreme Court judges ousted by ex-President Pervez Musharraf have returned to the bench, but not the deposed chief justice.brThe move cements deep political divisions in Pakistan a day before lawmakers elect Musharraf's successor.Law Minister Farooq Naek said three judges purged during a burst of emergency rule last November were sworn back into the court on Friday.brNaek said deposed chief justice Iftikhar Mohammed Chaudhry was not reinstated.brThe main opposition party quit the ruling coalition last month over the failure to restore Chaudhry, a heroic figure for many in Pakistan for standing up to Musharraf.br