A breakthrough in power-sharing talks between President Pervez Musharraf and former prime minister Benazir Bhutto appeared imminent on Thursday.

Railways Minister Sheikh Rashid Ahmed, who is close to Mr Musharraf, said an announcement of an agreement — expected to include the dropping of corruption charges against Ms Bhutto — would come within the house. A senior official from Bhutto’s party in London also said there would be an agreement.

Neither side provided further details. The Bhutto aide spoke on condition of anonymity, because he was not authorised to reveal the deal’s substance, ahead of the formal announcement.

“Things are going in the right direction, as I have been saying for the past several days,” Mr Ahmed said. He added, “Wait for five or six hours and everything will be clear by that time.”

Ms Bhutto told reporters in London that she expected the government to issue an “ordinance,” quashing corruption cases against her and others — one of her key demands.

Bhutto went into exile eight years ago to avoid arrest on corruption cases registered by another exiled former leader, Nawaz Sharif. 

She has also been seeking a constitutional amendment that would allow her to seek the prime minister’s job for the third time. She is also seeking other measures to create a level playing field before  Parliamentary elections, which are due by January.

An agreement would head off a threatened mass resignation from Parliament by her Pakistan People’s Party just two days before Musharraf seeks another five-year term in a vote by national and provincial lawmakers.

Musharraf is expected to win, assuming his lawyers can fend off last ditch legal challenges to his candidacy. An opposition lawyer urged the Supreme Court on Thursday to postpone the election to give the judges time to consider Musharraf’s eligibility. The court has been adjourned until Friday.