Nov. 23 (Bloomberg) -- Pakistan said the Commonwealth's decision to suspended the country from the 53-nation group after President Pervez Musharraf failed to lift emergency rule and quit as army chief is ``unjustified.''

``A neutral caretaker government is in place to hold free, fair and impartial elections,'' the Foreign Ministry said in a statement from the capital, Islamabad, today. ``The government of Pakistan is committed to restore full democracy.''

Musharraf's state of emergency ``represents a serious violation of the Commonwealth's fundamental political values,'' the body's Secretary-General Don McKinnon said at a news conference in the Ugandan capital, Kampala, earlier today.

Pakistan will be barred from attending meetings of the Commonwealth, which represents almost a third of the world's population, and receiving assistance from the group. The U.S., Musharraf's closest ally, has led international pressure for him to lift the emergency decree before Jan. 8 elections and release thousands of political prisoners.

``The pace of progress toward normalcy will be determined by ground realities and legal requirements, rather than unrealistic demands from outside,'' the ministry said. Pakistan ``deeply regrets'' the move by the Commonwealth because it fails to take into account the ``objective conditions prevailing'' in the country.

Musharraf, 64, in a meeting with Saudi Arabia's King Abdullah in Riyadh earlier this week, said he had little choice over declaring a state of emergency because law and order in the country was collapsing.

Pakistan's Supreme Court ruled yesterday that Musharraf's re-election last month was valid, clearing the way for him to meet his pledge to take the presidential oath for a second five- year term as a civilian.

Opposition Leaders

Opposition leaders have vowed to keep protesting emergency rule and say they may boycott the election unless Musharraf quits as president and restores the constitution.

Nawaz Sharif, Pakistan's exiled former premier, plans to return home next week to lead his party in parliamentary elections, a party spokesman said today. Sharif was arrested and deported back to Saudi Arabia after he tried to return in September.

The Commonwealth looks forward to Musharraf stepping down as head of the army ``as soon as possible,'' McKinnon said.

A ministerial taskforce will review Pakistan's progress in restoring ``democracy and the rule of law'' after the elections and may send a delegation to the country, he added.

1999 Suspension

Pakistan was previously suspended in 1999 after Musharraf took power in a military coup. It was restored to full membership in 2004, although members continued to press for Musharraf to step down as head of the army.

Fiji remains suspended following a military coup last year, while Zimbabwe quit the body in December 2003 to protest its suspension. The Commonwealth groups former members of the British Empire and promotes democracy and respect for human rights.

Following the Nov. 3 emergency decree, the Commonwealth demanded Musharraf release political prisoners, restore the constitution, create conditions for free and fair elections and quit as army chief. Its deadline expired late yesterday.

McKinnon noted Pakistan had made progress toward meeting the demands. The government released opposition leader and former cricket captain Imran Khan from jail this week and said it freed 3,600 other political prisoners. It announced the date for the ballot and said the elections would be transparent.

Still, the Commonwealth's conditions were ``substantially unfulfilled'' and ``fundamental rights and rule of law remain curtained'' the body said in a statement.

U.K. Reaction

The suspension was a ``clear and necessary decision,'' U.K. Prime Minister Gordon Brown, who is attending the Commonwealth summit in Kampala today, said in a statement.

Britain will work with Pakistan to ensure it ``returns to its rightful position in the Commonwealth once the remaining steps are taken,'' Brown added.

Musharraf fired Chief Justice Iftikhar Muhammed Chaudhry and several other Supreme Court judges, saying the judiciary was interfering in affairs of state and hampering the fight against terrorism. They were about to rule on whether his Oct. 6 re- election while remaining army chief was valid.

All the judges on the 10-member Supreme Court panel that made yesterday's ruling were appointed by Musharraf under emergency rule.

Attorney-General Malik Muhammad Qayyum said the court is expected to confirm its ruling in writing today, allowing the Election Commission to declare the result, the official Associated Press of Pakistan reported.

Musharraf will then step down as army chief and take the presidential oath as a civilian, he said, without providing a date. The president has said he will hand responsibility for the army to Ashfaq Parvez Kayani.

To contact the reporters on this story: Ed Johnson in Sydney at ejohnson28@bloomberg.net; Mark Deen in Kampala, Uganda through the London office at markdeen@bloomberg.net.

Last Updated: November 23, 2007 02:22 EST