Precarious ceasefire in place between Bugti tribesmen and approx. 300 paramilitary troops in Balochistan after negotiations: Chaudhury Shujaat Hussain, head of federal ruling Pakistan Muslim League party, and Tribal Chief Akbar Bugti reportedly set up accord and agreed to 3-member monitoring committee though details of agreement yet to be released. Continued stalemate in parliament on central government agreement with Baloch regional parties on economic and political autonomy led to continued attacks by militants on security personnel and government installations. Security forces launched search operations for militants in western tribal region of North Waziristan 21 April. Pakistan Peoples Party (PPP) plans for rally for leader Benazir Bhutto’s husband Asif Ali Zardari thwarted by massive security operation which saw thousands of PPP supporters arrested: leading PPP politicians, including parliamentarians, later released but many party workers still detained.

Dramatic escalation in Balochistan violence. Explosion at Shia shrine in Fatehpur village 19 March killed at least 50; no claim of responsibility. Clashes between paramilitary Frontier Constabulary (FC) and Bugti tribesmen demanding greater economic and political rights killed 23 according to government, but opposition presented to parliament list of 59 civilians who allegedly died in crossfire. Access to Dera Bugti blocked by FC; tribesmen besieged over 300 troops; infrastructure also targeted as 2 bombs detonated on Balochistan trains 18 March. High-level negotiations underway to defuse crisis though deal between military and tribal chief Nawab Akbar Bugti could provoke even more violence by Baloch political activists since will be seen as sellout. Muthahida Majlis-e-Amal (MMA) opposition alliance of Islamic parties held Karachi rally against President Musharraf and his pro-U.S. policies.

Situation worsened in Balochistan while internal political dispute destabilised Sindh provincial government. Baloch parties - with support of major Pashtun party - called province-wide strike 12 February, describing strike as referendum on Musharraf government. Two Islamic extremists blew themselves up after gunbattle with police in Quetta 18 February while attacks on infrastructure increased. In Sindh accusations of corruption between chief minister and his revenue minister continued after latter dismissed, destabilising ruling party and provincial government. Peace agreement signed between government and South Waziristan militant leader Baitullah Mehsud and supporters: militants pledged to end attacks on government installations and support for foreign groups in return for exemption from legal and punitive action for past activities - no pledge to end cross-border attacks against Coalition and Afghan government.

Balochistan violence escalated: 13 killed, over 40 injured, while natural gas supply to half the country disrupted. Angry Bugti tribesmen fired rockets at gas installations between 7 and 12 January after army personnel allegedly raped female doctor in Sui City. Paramilitary forces reacted by bulldozing houses belonging to tribesmen. Pakistan army decided to set up military base in Sui despite Baloch opposition. Senior Shia leader shot dead in northern city of Gilgit 8 January - ensuing sectarian violence killed 15 before curfew imposed.

Quetta blast 10 December killed 10; claimed by Baluch Liberation Army (BLA) as targeting army personnel as warning to government against construction of Gwadar port and new military bases. President Pervez Musharraf announced intention to remain as army chief 18 December, reneging on January 2004 deal with Islamist coalition (MMA) to retire by 31 December. Asif Ali Zardari, husband of opposition leader Benazir Bhutto, briefly re-arrested, ostensibly for failing to appear at court hearing, but in fact prevented Islamabad party rally. Violence continued in South Waziristan as local Pashtun politician shot dead 29 December.

Pakistani forces announced end of operations in South Waziristan, claiming to have killed at least 302 al- Qaeda-linked militants, arrested 600. Upper house of parliament passed bill 1 November allowing General Pervez Musharraf to remain as both president and army chief until 2007, to come into effect 31 December. Asif Zardari, husband of former PM Benazir Bhutto, released after 8 years in prison amid speculation he may revitalise opposition Pakistan People's Party and encourage Bhutto return from exile. Cinema blast in North West Frontier Province killed 2 and injured at least 29, while 2 explosions in Balochistan 24/25 November left 1 person dead.

Sectarian violence erupted: at least 75 killed in series of retaliatory attacks following 1 October bombing of Shia mosque in eastern city of Sialkot, killing 30; 40 killed in Multan city 7 October when 2 car bombs targeted meeting of banned radical Sunni group; Sunni cleric shot dead 9 October in Karachi; and Shia mosque in Lahore attacked by suicide bomber 10 October, leaving 4 dead. Military operations continued in South Waziristan tribal region. Attempt to free 2 Chinese engineers held hostage resulted in death of 1 hostage and all 5 kidnappers 15 October, prompting widespread search by security forces for militant leader Abdullah Mehsud, who orchestrated kidnapping. Investigation underway into 28 October Islamabad Marriott hotel explosion that injured 7. 342- member National Assembly (lower house of parliament) passed controversial bill 14 October by simple majority allowing General Pervez Musharraf to remain as both president and head of army until 2007.

Operations intensified in South Waziristan tribal region where security forces reportedly killed 70 al-Qaeda- linked militants in 9, 13 September attacks; alleged heavy civilian casualties, human rights abuses by army. Security forces killed Amjad Farooqi 26 September, said to have plotted President Pervez Musharraf assassination attempts and involved in killing of U.S. journalist Daniel Pearl. Nation divided over Musharraf’s position as chief of army staff - despite January 2004 deal with Islamist coalition (MMA) to retire by 31 December. Balochistan National Party continued call for protection of rights and withdrawal of army from province; blast in capital Quetta killed 1, 28 September. First meeting between Musharraf and Indian PM Manmohan Singh 24 September.

Finance Minister Shaukat Aziz appointed prime minister following resignation of caretaker PM Chaudhry Shujaat Hussain. Balochistan Chief Minister Jam Muhammad Yousuf’s convoy attacked 2 August in Khuzdar, killing 2; claimed by Balochistan Liberation Army in protest against ongoing army operation and construction of new cantonments in province. Further violence in Balochistan killed 7. Military operations continued in South Waziristan tribal region in hunt for al-Qaeda suspects and local supporters. Bombs on rail tracks in Peshawar 25 August and Sindh province 16 August narrowly missed disastrous derailing. President Pervez Musharraf and visiting Afghan President Hamid Karzai vowed 23 August to enhance cooperation in fight against terrorism.

Clashes continued in South Waziristan as military hunted al-Qaeda suspects and local supporters; at least 12 killed in separate incidents. Government continued to close South Waziristan Afghan refugee camps, alleged to be militant strongholds. As of 21 July, approximately 25,000 refugees had fled back to Afghanistan. PM nominee Shaukat Aziz survived assassination attempt 30 July; 7 killed. Attack by militants claimed 6 in western province of Baluchistan 31 July. Karachi explosion killed employee of hardline Islamic charity 24 July. Fighting between Solangi and Jagirani tribes 25 July in Khairpur left 8 dead. Bilateral talks and confidence building measures continued with India.