A minister also confirmed the discussions were taking place. He said Musharraf was trying to "thrash out differences with ruling party leadership, which opposes an amendment which will pave the way for Benazir or Nawaz to hold the Prime Minister's office for the third term."
Nawaz said on Thursday that he would fly home on September 10 after seven years in exile to lead a "decisive battle" against Musharraf, who ousted him in a coup in 1999, and contest general elections due by early 2008. Pakistan People's Party said that it was still waiting for a response from the president's camp but dismissed reports it had delivered a deadline of Friday.
Benazir wants Musharraf to quit the army before the presidential election; concede the power to dissolve parliament; and overturn a ban on anyone serving a third term as Prime Minister, which would have ruled her out. "If Musharraf does not agree to our proposals, we will have to go our separate ways. Our struggle for democracy will continue," party spokesman Farhatullah Babar told AFP.
In Washington, White House spokesman Gordon Johndroe said Pakistanis would have to decide themselves whether Musharraf should keep his army position. "Musharraf has made commitments in the past," he said, adding that, first and foremost, the United States seeks "free and fair elections."
A senior US official told AFP Musharraf had "given us assurance that he is going to resolve the issue of the dual leadership, and he is going to do that in the near term." "Does it mean before elections or after elections? I just can't get into that," said the official, speaking on condition of anonymity.
Analysts say Musharraf has driven a clear wedge between the two mainstream political leaders by dangling the prospect of a deal with Benazir. "In a way, Musharraf has achieved one success by dividing the two major opposition parties," political analyst Hasan Askari said, adding that it did not necessarily mean Musharraf could win another five years.