Pakistani Military Hints at Transitional Regime

The new leader of Pakistan refused Friday to give U.S. officials any commitment about restoring democracy but offered the first hints that he may be planning something less than a long-term military dictatorship.

In two hours of talks with U.S. Ambassador William Milam, Gen. Pervez Musharraf declined to say whether he had any plans to turn over power to civilians or when he might hold new elections.

Musharraf, the army chief of staff, “didn’t give an indication of what his intentions were or his timeline,” White House Press Secretary Joe Lockhart said in Washington. “We are pressing on them to return to civilian and democratic rule.”

However, Musharraf on Friday offered the first indication that he viewed himself as a transitional leader. In a statement released after the meeting with Milam, the Pakistani military said plans for an “impartial interim setup” were nearly complete. The statement declared that the new regime “would ensure stability, credibility, transparency and accountability in running the affairs of state.”

“Top priority would be accorded to economic revival,” the army statement said.

While the statement did not indicate how long Musharraf planned to stay in power, military sources who requested anonymity said the general intended to exercise control for two to three years.

The statement came just hours after Musharraf declared military rule and appointed himself leader. The new regime has maintained a low profile since Tuesday, when it toppled the elected government of Prime Minister Nawaz Sharif.

The coup has prompted the U.S. to cut aid to Pakistan.

U.S. officials here and in Washington conceded that the new economic measures carried little weight, largely because Pakistan is already under U.S. sanctions for its efforts to develop nuclear weapons.

Pakistani officials said Musharraf will address the nation today. The announcement came amid reports that Musharraf was trying to enlist civilians into his new government.

“The army does not want to take responsibility for running the country,” said retired Lt. Gen. Talat Masood, a former defense minister. “What Musharraf will do is bring in a team of technocrats to do it for him. The army will stay in the background.”

The coup in Pakistan has sent an alarm around the world, in part because of fear of political chaos in a country that last year tested nuclear weapons. Pakistan has been ruled by the military for nearly half its 52-year history, and this spring it sparked a dangerous border clash with India that ended only when President Clinton pressed Sharif to pull back Pakistani troops.

In one of his first actions as Pakistan’s leader, Musharraf on Friday ordered financial institutions to freeze the accounts of about 500 politicians, including those of Sharif and former Prime Minister Benazir Bhutto. Musharraf has vowed to attack the corruption that is widely acknowledged to permeate Pakistan’s political culture.

Musharraf also has vowed to step up the collection of income taxes, which are paid by only about one in every 100 citizens. And he has promised to recoup an estimated $4 billion in defaulted loans made by state-owned banks, which have been accused of lending to political cronies for noneconomic purposes.

Musharraf also moved to prevent the flight of capital from the country, including the temporary closing of foreign currency exchanges. The steps were designed to protect Pakistan’s approximately $1.5 billion in foreign reserves.

In Washington, the Clinton administration reduced foreign aid after making a formal determination that a coup had occurred. However, half of the approximately $5 million being provided this year to Pakistan is counter-narcotics money that won’t be reduced.

The U.S. also could refuse to support disbursing the next installment of a $1.6-billion loan by the International Monetary Fund, but the payment was already being withheld because Pakistan has failed to meet performance requirements.

State Department spokesman James Foley conceded that the sanctions were modest because most aid had been cut off earlier.

Foley said the U.S. ambassador on Friday sought assurance that Sharif, the deposed prime minister now under arrest, will be safe. Musharraf replied that Sharif and other top officials in custody were being well treated.

Meanwhile, a senior U.S. defense official said the United States is confident that the coup leaders can maintain control over Pakistan’s nuclear weapons program. “We are not worried about it,” the official said. “They for a long period have had control of the nuclear weapons there. We feel confident that they are still in charge, and that is not an issue for us.”

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Filkins reported from Islamabad and Gerstenzang from Washington. Times staff writers Norman Kempster and Paul Richter in Washington contributed to this report.