In an interview with The Associated Press, he accused former Prime Minister Benazir Bhutto, currently under house arrest, of fueling political turmoil and rejected Western pressure to quickly lift emergency rule, which he indicated was likely to continue through the January elections.
"All those who are blunt enough to tell me to my face what the reality is, all of them think, yes, it will lead the country to chaos if I do not handle the political environment now with me remaining as the president," he said at his army office.
The U.S.-backed general had originally planned to quit as chief of the powerful army by Thursday, when his presidential mandate and the term of the current parliament expire, but he said he was forced to delay the restoration of civilian rule until a court ruling on his recent re-election.
He said the timing would depend on the Supreme Court --- which he purged of independent-minded judges when he suspended the constitution Nov. 3 --- but expected it to happen this month.
The U.S. and other Western allies have been pushing for him to quit his military post and end the emergency, warning that it could seriously undermine the legitimacy of the elections that are meant to end eight years of direct military rule since he took power in a coup. The Bush administration sent its No. 2 diplomat, Deputy Secretary of State John Negroponte, to Pakistan.
Washington wants Musharraf to share power with other moderate forces to combat rising Islamic extremism that the general cited as the justification for seizing emergency powers.
Authorities put Bhutto under house arrest Tuesday for the second time in a week, and a senior federal government official told the AP that she was grounded until at least Thursday.
"The position for her will remain like this until at least tomorrow. Then the government will review what to do with her," the official said on condition of anonymity because the matter was politically sensitive and no decision had been made to release her.
Another opposition leader was arrested after he showed up at a student rally in Lahore, police said. Imran Khan, a cricket legend who leads a small but outspoken opposition party, was the only one of Musharraf`s most outspoken critics not in detention or exile.
Bhutto said Tuesday she was working to forge a partnership with Nawaz Sharif, the man overthrown as prime minister in a 1999 coup by Musharraf. She demanded that Musharraf step down, dashing Western hopes the two moderate leaders would form an alliance to confront strengthening Islamic extremists.
Bhutto`s call, which could see Pakistan`s two main opposition parties joining, raised a new threat for Musharraf. It further complicated matters for Washington, which has criticized Musharraf`s recent crackdown on dissent but sees him as a dependable partner against al-Qaida.
Negroponte was expected in Pakistan on Friday to underscore U.S. concerns about the situation, where rallies have been banned and independent TV news blacked out.
"We continue to want to see elections move forward in a free, fair and transparent manner (and) we want to see the emergency decree lifted," deputy State Department spokesman Tom Casey said. "We want to see all moderate political forces be able to work together.
However, Bhutto said she could not work with Musharraf.
"The international community needs to decide whether it will go with one man or the people of Pakistan," Bhutto told the AP by telephone Tuesday from the house where she is being held in the city of Lahore.
Musharraf says emergency rule is needed to curb political unrest that he says is hampering the government`s fight against militants along the border with Afghanistan.
Critics contend the Nov. 3 emergency decree was a cover to oust independent-minded judges who had crimped Musharraf`s powers. They call his move outright martial law since authorities have unchecked power to detain opponents.
Khan, who had been in hiding since escaping from house arrest a day after emergency rule was declared, was promptly detained by hardline students and handed over to police Wednesday, authorities said.
Some 200 student supporters cheered wildly and lifted Khan into the air when he got out of a car on a university campus in Lahore, but other students representing the hard-line Jamaat-e-Islami party surged forward, grabbed Khan and handed him over to police, senior police official Aftab Cheema told the AP.
Cheema said Khan is being held at an undisclosed location, and was charged under the Anti-Terrorism Act. He gave no details of specific charges, but said Khan was disturbing the peace.
"He created a law and order situation at the educational institution and caused a disruption in educational activities," Cheema told AP.
Jamaat-e-Islami is also opposed to Musharraf`s declaration of emergency rule, but the students apparently were angered that the relatively moderate Khan was allowed on campus.
Bhutto, a secularist who has served as prime minister twice, is trapped in a padlocked house surrounded by hundreds of police. Approach roads are blocked with trucks and metal barricades lined by barbed wire.
Her detention prevented her from staging a protest procession to the capital, Islamabad. The procession went ahead but was quickly stopped by police, and security forces also clashed with anti-government protesters in other cities.
"Musharraf knows how to crack down against pro-democracy forces," Bhutto wrote in an op-ed piece published Wednesday in the Washington Post. "He is, however, unwilling or unable to track down and arrest Osama bin Laden or contain the extremists. This is the reality of Pakistan in November 2007.
"The only terror that Musharraf`s regime seems able to confront is the terror of his own illegitimacy," she added.
Bhutto said she would work to forge an opposition alliance including Sharif, a longtime rival and former prime minister also trying to make a political comeback.
Sharif returned to Pakistan in September to prepare for January parliamentary elections but was immediately deported despite a Pakistani Supreme Court ruling that he could stay.
Speaking to the AP from exile in Saudi Arabia, Sharif welcomed Bhutto`s comments and urged opposition parties to unite to "fight dictatorship." AP