Gilani sacks Defence Secretary

Pakistan plunged into fresh turmoil with the powerful Army warning Yousuf Raza Gilani of "grievous consequences" for his recent criticism of the military and ISI, and the Prime Minister taking them head on by sacking the Defence Secretary over the memo scandal.

On a day of fast-paced developments that set the stage for an open confrontation, the Army issued a terse statement against the Prime Minister, saying his allegations against the Army and ISI chiefs had "very serious ramifications with potentially grievous consequences for the country".

In another move, the Army brought in Brigadier Sarfaraz Ali as the new commander of a Rawalpindi-based army unit that has traditionally played a vital role in military coups.

Gilani told reporters late in Wednesday night that Army Chief Ashfaq Parvez Kayani had spoken to him before the statement was issued.

The Prime Minister defended his decision to dismiss Defence Secretary Lt Gen (retd) Naeem Khalid Lodhi, who is considered close to Kayani, saying the top defence official had violated rules of business and had to go.

He also rejected murmurs of any threat to democracy, which he said was Pakistan's "destiny" now.

The unusually-strong Army rebuff came two days after Gilani told a state-run Chinese portal that Kayani and ISI chief Lt Gen Ahmed Shuja Pasha had acted in an "unconstitutional and illegal" manner by filing affidavits on the memo issue in the Supreme Court without obtaining the Government's prior permission.

"There can be no allegation more serious than what the honourable prime minister has levelled against COAS and DG ISI (army chief and spy chief) and has unfortunately charged the officers for violation of the constitution of the country," the army statement said.

Analysts have projected three scenarios that can emerge from the situation under which Pakistan President Asif Ali Zardari steps down and announces early polls, the ruling PPP replaces Gilani as Prime Minister or Kayani spearheads a military takeover.

Hours after he fired the Defence Secretary over the affidavit row, Gilani defended Lodhi's the move, telling reporters that it was done only after hearing the other side. Gilani sacked the Defence Secretary with immediate effect for "gross misconduct and illegal action", a statement issued by the Prime Minister's Office said. Action was taken against Lodhi "for creating misunderstanding between the state institutions", it said.

Cabinet Secretary Nargis Sethi, known to be close to Gilani, was given additional charge of the post of Defence Secretary, the statement said.

The government had recently served a show cause notice to Lodhi after he filed an affidavit in the Supreme Court that contended the civilian administration had no control over the operational matters of the army and ISI.

He further stated in the affidavit that the government had only limited administrative control of the army and ISI.

Speaking to the media, the Prime Minister said the Senate elections will be held on time and democracy was there to stay in Pakistan.

"Democracy is Pakistan's destiny now and all institutions will function under the government," he said, while also making it clear that his government had nothing against "anybody". "... we were left with no choice (but to dismiss the Defence Secretary) because he did not follow the rules of business," Gilani said as he was bombarded with questions.

Kayani, on his part, convened a meeting with his key military aides at the General Headquarters and is expected to review the situation with his Corps Commanders on Thursday.

The beleaguered Gilani government is already on a collision course with the judiciary with the Supreme Court warning that action could be taken against both the President and the Prime Minister for failing to act on a court order to reopen corruption case against President Asif Ali Zardari.

Earlier, Zardari refuted reports that he had offered to resign at a meeting of his Pakistan Peoples Party (PPP) and its allies.