Pakistan's President Pervez Musharraf, threatened by possible impeachment, is reconciled to stepping down before he is hounded out of office, according to a senior adviser to the new government. Musharraf, who came to power as a general after a coup in 1999, has probably got a matter of weeks, at most a few months, before the curtain falls, political insiders say. “He is prepared to go and go with dignity,” said the source close to the leadership of the Pakistan People's Party (PPP), which heads the 2-month-old coalition government. “We will try to make it very dignified,” the PPP source said, adding it was politically difficult to be seen helping the disliked president as such a stance risked losing popular support. Although Musharraf has been a staunch ally in the US-led “war on terror” and launched a peace initiative with India, his exit is unlikely to disturb either so long as Pakistan stabilises. The US has good communications with Musharraf's successor as army chief, General Ashfaq Kayani, and the PPP-led government is following through on the peace process. In the post-Musharraf era Pakistan faces challenges beyond the constant threat from militants linked to Al-Qaeda and the Taleban. The new government is grappling with a deteriorating macro-economic situation, and the stock market and rupee have fallen sharply in recent weeks. PPP leader Asif Ali Zardari, the widower and political successor of the late Benazir Bhutto, has proposed a constitutional package that would strip Musharraf of power, but possibly afford him legal protection from foes who want to see him humiliated. The PPP hopes to buy time to settle terms for the president's departure and steal the thunder from coalition partner Nawaz Sharif, the prime minister Musharraf overthrew. Sharif wants his usurper impeached or tried for treason. Officials say Musharraf wants indemnity for his actions on Nov. 3, when he suspended the constitution and imposed emergency rule to purge the judiciary before it could rule illegal his re-election the previous month while still army chief. Some segments of the media have intensified calls for Musharraf to resign, and a lawyers movement that sprang up last year in defence of the judiciary plans a mass protest on June 10, the same day the government is due to present its budget. “General Musharraf may be compelled to think of resigning sooner rather than later, ” analyst Nasim Zehra said. A general election on Feb. 18 swept away Musharraf's parliamentary support and resulted in an uneasy alliance betw __