Pakistan crisis deepens as governor shot dead

ISLAMABAD, (Reuters) – The governor of Pakistan’s  central Punjab province, a senior member of the ruling party,  was shot dead by one of his bodyguards on Tuesday, deepening a  political crisis in the nuclear-armed South Asian nation.

Salman Taseer

Salman Taseer, a liberal politician close to President Asif  Ali Zardari, had no day-to-day role in the central government,  but his killing in broad daylight at a shopping centre in  Islamabad reinforces the sense that the government is incapable  of stabilising the Muslim country of 170 million.

The shooting occurred two days after a key partner in Prime  Minister Yusuf Raza Gilani’s coalition bolted for the opposition  in protest over fuel price policies, leaving him without a  parliamentary majority and struggling to save his government. The United States is looking to Pakistan to tackle homegrown  militants and help it turn the war around in Afghanistan, where  U.S.-led NATO and Afghan troops are fighting the Taliban.

“The crisis of governance has been exposed by this murder.  It has also exposed how deep-rooted is the problem of terrorism  in Pakistan,” political analyst Hasan Askari Rizvi said. “The  government is in real trouble.”

A witness said Taseer was stepping out of his car at a  shopping area when he was shot in one of Pakistan’s most  high-profile assassinations since former prime minister Benazir  Bhutto was killed in 2007.

Interior Minister Rehman Malik said Taseer was killed  because of his opposition to Pakistan’s blasphemy law, which  rights groups say is often exploited by religious extremists and  ordinary Pakistanis to settle personal scores.

Islamist groups have been angered by what they believe are  government plans to change or scrap the law.

The shooting left blood stains in the parking area at Kohsar  shopping centre in Islamabad, which is popular with foreigners. “The governor fell down and the man who fired at him threw  down his gun and raised both hands,” said the witness, Ali  Imran.

The turmoil could make it harder for the government to push  through economic reforms demanded by the International Monetary  Fund (IMF), which has been propping up Pakistan’s economy with  an $11 billion loan agreed in November of 2008. Still, Pakistan’s stock market, which rose 28 percent last  year, has remained relatively stable this week and some  investors seem ready to ride out the turbulence.

“Political instability and volatility is always part of the  story when investing in Pakistan,” said Andrea Nannini, manager  of the HSBC New Frontiers Fund in London, before news of the  assassination emerged. “Although (the coalition defection) might  increase volatility in the short-term, we believe in the  long-term the market is attractive.”