KARACHI, Aug 29: Prime Minister Yousuf Raza Gilani said on Friday that in order to ensure stability of the new democratic government it was necessary that president and prime minister should be from the same party, at least for one term.

Speaking at a dinner hosted by Sindh Chief Minister Syed Qaim Ali Shah, the prime minister said that since the presidency was a symbol of national unity and cohesion, the president should be from the party which had roots in the four provinces.

He urged all political forces to support Mr Zardari in the presidential election. He said that Mr Zardari had demonstrated the capability to keep the country united in difficult times.

The dinner was part of an election campaign for Mr Zardari.

Earlier talking to reporters on his arrival in the city, the prime minister said the government was facing financial problems in enhancing power generation capacity after the World Bank and other financial institutions refused to provide money for subsidies.

He said the international donors wanted the government to pass on the burden to consumers. “Had this been done in the past five years the people would not have faced the inconvenience they are facing today.”

Mr Gilani said the position at present was that all subsidies were being given by the government. “The withdrawal of subsidies really upset us and we have no choice but to pass on the subsidies to people.”

He said he had talked to the World Bank, Asian Development Bank and the State Bank governor and the required money had been arranged for generation to the existing capacity by clearing outstanding bills.

In reply to a question about the affairs of the KESC, the prime minister said that a meeting of the special cabinet committee had been held to discuss the issue and it was resolved. He said he would send the water and power minister to Karachi to inform the media.

The prime minister denied having given a deadline of seven days for reinstatement of the deposed judges. However, he said the judges’ issue would be resolved.

He said he was not part of the team which had decided to reinstate the judges 24 hours after the resignation or impeachment of Gen (retd) Pervez Musharraf.

Mr Gilani said that a handful of militants, funded and supported by the drug mafia and foreign elements, were trying to destabilise the country and its economy. He admitted that there was a flight of capital from the country because of the deteriorating law and order.

“We will not allow anyone to create a state within the state. We will talk to only those tribesmen who agree to lay down their arms.”

He said the US government had agreed to provide Rs1,000 billion for development of Fata under a 10-year plan.

The prime minister said there would be no compromise on dignity and sovereignty of the country.

About MQM’s claim about the presence of the Taliban in Karachi, the prime minister said: “As I have said I do not talk about the Taliban only, but militants. I condemn violence anywhere in the world and I condemn the Taliban for doing this here in their homeland.”

Talking to reporters at the Karachi airport, he denied that Mr Zardari would withdraw from the presidential race. “This is wrong. Mr Zardari will contest the election.”

He confirmed reports that Mr Zardari was living in the Prime Minister’s House as a security precaution. “He is using the PM’s official residence for his day-to-day activities.”

Mr Gilani played down about threat the PML-N in opposition might pose and said that talks with its leadership would continue to resolve all issues.