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Pakistan wants Taliban talks

PEACE talks with the Taliban were back on the agenda last night as a historic secret session of Pakistan's parliament revealed leaders of the country's ruling coalition now favoured dialogue over military action.

Maulana Fazlur Rehman, leader of the Jamiat Ulema-e-Islam party that is a key component of the coalition dominated by the Pakistan People's Party, emerged as "a spokesman for the Taliban" yesterday as the parliament concluded its second week of debate on how to deal with the jihadi militants sweeping the country.

A spokesman for the Pakistan Taliban added to the momentum for negotiations by saying "unconditional talks" could be held if the Government stopped its military operations. Maulvi Omar, speaking from a hideout in the strategic valley of Swat, where intense fighting is going on between the Pakistan army and the militants, said peace talks would start if military action was halted.

"We are willing to negotiate with the Government ... we are also willing to lay down our arms once the military ceases operations against us," he said.

Negotiations are strongly opposed by the US, Pakistan's key ally in the conflict, and by elements in the army that remain loyal to ousted former president Pervez Musharraf.

The mood for change in tactics against the jihadis came as analysts warned Pakistan's economic plight was eroding its ability to confront the jihadi militants.

Pakistan's currency slumped to a record low against the US dollar on Thursday. The rupee has lost more than 30 per cent of its value this year. Pakistan's political and security problems are deterring foreign investment and exacerbating the country's economic problems, which include runaway inflation and slowing growth.

China vowed yesterday to do what it could to help the cash-strapped nation avert financial disaster as Pakistani President Asif Ali Zardari continued an official visit aimed at rustling up crucial Chinese investments.

The Financial Times reported, without citing sources, that Mr Zardari would seek a soft loan of between $US500 million and $US1.5 billion from China to help Pakistan avoid bankruptcy.

The global financial crisis has pushed Pakistan closer to the brink and reports, denied by Islamabad, claim the country could be bankrupt as soon as February.

But the secret session of parliament, summoned to achieve a national consensus on policy the Government has pledged it will abide by, has left no doubt that the mood among the MPs elected in February is in favour of dialogue.

Demanding that a truce be declared with the militants, Mr Rehman, a powerful figure in the violence plagued North West Frontier Province, offered to mediate between the Government and the Taliban.

"Of the Government's policy of three Ds -- dialogue, development and (military) deterrence -- our party believes in the first two," he said as MPs cheered, setting the stage for what many analysts believe is an inevitable change of stance by Pakistan's new civilian Government, culminating in peace talks.

The strength of feeling has surprised the Government. The expectation had been that MPs would rubberstamp the Government's policy of hitting the militants hard -- Pakistan is engaged in its biggest offensive against al-Qa'ida and the Taliban since 2001 -- while offering to hold a dialogue with any insurgents who laid down their weapons.

Instead, there has been a groundswell of support for peace talks and an end to the military offensive launched by Mr Musharraf with US backing.

Chaudhry Nisar Ali Khan, parliamentary leader of the Pakistan Muslim League (N), told parliament yesterday: "The people gave us a mandate for change but so far the same old policies are being pursued."

Government leader in the Senate Mian Raza Rabbani conceded last night that "the Government is ready to reshape its policies in the light of the guidelines provided by the MPs".

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