Bilawal Bhutto Zardari (right), new chairman of slain leader Benazir Bhutto's Pakistan People's Party, prays with his sisters Assefa (left) and Sanam (centre) at the grave of their mother in Garhi Khuda Bukhsh near Naudero yesterday. - Reuters

ISLAMABAD (Reuters):

Pakistani electoral officials will decide today whether to go ahead with a January 8 poll, with expectations it will be delayed by up to two months after Benazir Bhutto's killing.

The opposition leader's assassination on Thursday has triggered bloodshed across Pakistan and rage against President Pervez Musharraf, casting doubts on nuclear-armed Pakistan's stability and its transition to civilian rule.

Western nations appealed for calm and sporadic violence erupted in the southern city of Hyderabad. Bhutto's Pakistan People's Party said it would take part in the elections despite the loss of its leader.

A spokeswoman said any postponement would help the PPP's opponents. The other main opposition party said it would also take part despite earlier threats of a boycott.

A former ruling party official said the election was likely to be delayed for up to two months, but Musharraf opponents said postponement would deliver a political advantage to his supporters.

Pakistan, a U.S. ally against terrorism, is gripped by fears of capital flight if security worsens. Shares on Monday fell nearly five per cent on the Karachi stock market, their steepest drop in 18 months, while the rupee hit a six-year low.

Violent acts

Violence flared again on Monday, with protesters firing into the air in the southern city of Hyderabad and throwing stones at police and shops. Storefronts were damaged in nearby Nawabshah, the home town of Bhutto's widower.

"The loss to public property and infrastructure has been colossal," the caretaker government said in a statement after a cabinet meeting in Islamabad. The death toll from violence since Bhutto's killing has reached 47.

Former Prime Minister Nawaz Sharif, leader of the other main opposition party, said it was dropping a plan to boycott the vote and would take part after the PPP decided to participate.

"In my view, there is a dire need today that the People's Party and Sindh should not be left alone," he told a news conference in the eastern city of Lahore.