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My Profile Top News Reuters top ten news stories delivered to your inbox each day. Subscribe You are here: Home > News > International > Article Home Business & Finance News U.S. Politics International Technology Entertainment Sports Lifestyle Oddly Enough Environment Health Science Special Coverage Video Pictures Your View The Great Debate Blogs Weather Reader Feedback Do More With Reuters RSS Widgets Mobile Podcasts Newsletters Your View Make Reuters My Homepage Partner Services CareerBuilder Affiliate Network Professional Products Support (Customer Zone) Reuters Media Financial Products About Thomson Reuters Pakistan to restore democracy in key province: PM Tue Mar 17, 2009 9:06am EDT Email | Print | Share | Reprints | Single Page [-] Text [+] By Robert Birsel ISLAMABAD (Reuters) - Pakistan's government will restore democracy quickly in its biggest and politically most important province as part of reconciliation efforts, Prime Minister Yousaf Raza Gilani said on Tuesday. Gilani announced on Monday that the government had agreed to reinstate a former chief justice dismissed in 2007 in a surprise move to defuse a crisis that had set Pakistan's two biggest parties on a collision course. The concession came after the United States, alarmed that Pakistan was being distracted from tackling al Qaeda and Taliban militants on its Afghan border, said U.S. aid could be at risk unless the looming confrontation ended. Analysts say tension will linger between President Asif Ali Zardari and his main rival, opposition leader and former prime minister Nawaz Sharif. Nevertheless, stocks have risen sharply since the announcement of the chief justice's restoration and Credit Suisse said an easing of the political temperature would help cut Pakistan's political risk premium. Gilani said he had spoken to Sharif and told him the government wanted to push forward with reconciliation. "The top priority is to lift governor's rule in Punjab as soon as possible," Gilani told reporters. Both Zardari and Sharif covet control of Punjab province, which returns more than half the members of the National Assembly. A Sharif party government was thrown out of power there last month and Zardari imposed central rule, or governor's rule, after a Supreme Court decision barred Sharif and his brother, until then the province's chief minister, from elected office. The court ruling triggered the nuclear-armed U.S. ally's latest political crisis. "WE ARE NOT WINNING" The end of the showdown has boosted optimism but newspapers warned celebrations should be tempered because political risks lay ahead. But they hoped the government could now focus on an economy in crisis and worsening Islamist militancy. The English-language News said in an editorial a lack of a clear plan for Punjab was a source of tension. "The immediate need is to reintroduce democracy in the country's largest province, allow its assembly to meet as soon as possible and elect its leader," the News said. Sharif's party has the most seats in the Punjab assembly and is likely to regain control of the province. Continued... View article on single page Share: Del.icio.us Digg Mixx Yahoo! Facebook LinkedIn also on reuters Blog: Tired of paying high prices? See your butcher Video Video: Elvis memories for sale target businesses A few states buck stem cell trend with bans More International News Madagascar president quits, opposition steps in | Video Benedict arrives in Africa for first time as pope Israel could use ballistic missiles against Iran: report | Video American U.N. official kidnapped in Pakistan said sick Iraq urges execution of Saddam-era officials More International News... 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