Pakistan’s GEO Television reports that People’s Party (PPP) Chairperson Benazir Bhutto has been put under house arrest by the government of Pakistan. Her party planned a rally in Rawalpindi today, the military’s administrative center and neighboring city to the capital, Islamabad.

Hamid Mir of GEO states that the decision was made by the Musharraf’s camp after relations between the PPP and the Muttahida Majlis-e Amal (MMA) — the coalition of Islamist parties — warmed this week after years of frostiness. The MMA, and in particular the JUI-F, is one of the wild cards that will determine how big the street protests will become. Mir also added that Maulana Fazlur Rahman (JUI-F) could be placed under house arrest soon as well.

It should also be noted that Bhutto today called for the restoration of the pre-emergency rule Supreme Court. She had not mentioned this earlier in the week, and indeed stated that the allegations made against several of the justices should be looked into.

Update – 11:57PM: GEO reports that 3500 policemen have surrounded the Islamabad home of Benazir Bhutto.

Update – November 9, 2007 – 12:14AM: The People’s Party states that their Rawalpindi rally will go on as planned.

Update – 10:20AM: Pakistani government spokesmen state that Bhutto’s detainment — described as “extra-protection” for her own good, not house arrest — is for three days, though it could end as early as tonight (Pakistan time). No charges have been presented to her. In fact, her talks with the government have been continuing throughout this week. Tariq Azeem states that the government conceded to two of her demands yesterday, though doesn’t specify. Do they, respectively, pertain to the removal of corruption charges and Ejaz Shah as director of the Intelligence Bureau? Will the former cause her to compromise her recent calls for the restoration of the pre-emergency rule Supreme Court?

Bhutto seeks to lead an oppositional coalition — indeed interested parties in and outside of Pakistan prefer, and perhaps facilitate, this — and at the same time, negotiate with the Musharraf camp on quite on matters specific to her. It will be difficult to pursue both paths over an extended period of time. Ultimately she might have to face a choice. A couple of important things to keep an eye on: how long the house arrest lasts; whether she continues to call for a restoration of the pre-emergency rule Supreme Court; and whether she continues to be broadcast on government television. If Bhutto manages to maintain ties with the Musharraf camp and either cement the division of the opposition or consolidate her leadership of it, she will have made a political coup of her own.

Update – 1:27PM: The house arrest of Bhutto has been lifted. It was designed to be short and sweet, preventing her from participating in a rally that would ‘disrupt’ the balance as per her agreement with Musharraf and potentially have resulted in the significant loss of life. The government has claimed that seven suicide bombers entered Rawalpindi in recent days to attack. There is strong speculation that the day’s events are an orchestrated dance by the two sides. Bhutto managed to appear live on Pakistani state television.

Talks between the Musharraf and Bhutto camps are still going on. Bhutto would like a firmer promise from Musharraf on the holding of elections and his resignation from the army. However, there might also be some other issues involved, including decisions by the post-emergency rule Supreme Court on Bhutto’s corruption cases and the sacking of Ejaz Shah.

Both Bhutto and Musharraf will have to continue to evaluate the political costs of their cooperation. The closer Musharraf gets to Benazir, the more difficulty he creates for his political allies, the Chaudhries of the PML-Q. The closer to Benazir gets to Musharraf (while many of her political workers and some senior party leaders like Aitzaz Ahsan are in jail) she will add to the tension inside her party.

But there are also benefits: Bhutto gets a foot in the door free of the corruption cases and Musharraf gets some extra time.

Update – 4:03PM: Bhutto’s movement might still be restricted.  We’ll have to wait till the morning to see if it will continue.  It’s 2AM in Islamabad right now.

On another note, the Bush administration stated that after review it has concluded recent events won’t impact U.S. aid to Pakistan (largely as a result of waivers that go into next year).