HISTORY OF PAKISTAN
Sharif was arrested, and in April 2000 he was convicted of abuse of power and other charges and sentenced to life imprisonment; his sentence was subsequently commuted and he was allowed to live in exile in Saudi Arabia. Meanwhile, the Supreme Court of Pakistan set a deadline of October 2002 for the restoration of civilian rule. The Commonwealth of Nations, however, formally suspended Pakistan's membership because the coup ousted a civilian government.
After assuming power, Musharraf's military government adopted a reformist posture. It identified economic reform as the most urgent measure needed to restore the confidence of foreign and local investors. As part of this strategy, Musharraf initiated an ambitious program based on accountability, improved governance, and widening of the tax net. However, in the wake of the coup new international sanctions were imposed to oppose the military regime. Donor agencies such as the International Monetary Fund were unwilling to provide new loans or reschedule Pakistan's foreign debt.
In the wake of the infamous terrorist attacks in the United States on September 11, 2001, Pakistan established itself as a vital U.S. ally and key regional player. Pakistan became a frontline state of high strategic importance as the U.S.-led war on terrorism unfolded in neighboring Afghanistan. Pakistan had been an ally of the Taliban, which had established a fundamentalist Islamic regime in Afghanistan in 1996. The Taliban was accused of harboring the suspected mastermind of the terrorist attacks, Osama bin Laden. The Taliban and bin Laden's international terrorist network, al-Qaeda, became the target of U.S.-led air strikes in Afghanistan that began on October 7. The Musharraf government agreed to provide logistical support and use of Pakistan's airspace for the offensive, and to share military intelligence to fight global terrorism. Formally breaking with the Taliban, Pakistan withdrew all of its diplomats from Afghanistan and officially closed its shared border. However, Pakistan faced a growing refugee crisis as many Afghans fled their country.
On September 22, meanwhile, the United States lifted most of the economic sanctions it had imposed after Pakistan exploded nuclear devices in 1998, brightening prospects for Pakistan's economy. Musharraf pledged to hold provincial and parliamentary elections by October 2002. In a bid to secure his position as president ahead of the elections, however, Musharraf called a referendum in April on extending his presidency for five years. The referendum returned a majority of votes in favor of the proposal, although low voter turnout, loose voting rules, and the absence of poll monitors tinged the results. In addition, political parties denounced the referendum because under the constitution, the president is to be selected by the National Assembly.
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