Islamabad, Feb. 27: The interim government in Pakistan has dropped all corruption charges against Pakistan People's Party (PPP) leader Asif Ali Zardari, hours before the PPP and the Nawaz Sharif led Pakistan Muslim League (Nawaz) meet to talk about government formation.

The development should be seen as an overt move by the caretaker government and President Pervez Musharraf to make peace with the new political dispensation. It is believed that Musharraf has been able to get Zardari to agree not to initiate impeachment proceedings against him.

Reports suggest that a working-deal has been finalised between Musharraf and Zardari through the efforts of the US, who acted as negotiators.

The first show of strength by three major parties -- Pakistan People’s Party, Pakistan Muslim League-N and Awami National Party -- which emerged victorious in the Feb 18 elections will be held here on Wednesday at a luncheon hosted by Zardari for the newly-elected MNAs.

PML-N chief Nawaz Sharif, president Shahbaz Sharif and ANP president Asfandyar Wali Khan are expected to attend the luncheon meeting where the three parties will get an opportunity for interacting with each other.

On Tuesday, Nawaz Sharif claimed in a statement to have cobbled together a two-thirds majority in the National Assembly.

It will be interesting to see how many newly-elected MNAs of the three parties and independents tuen up at the meeting.