Asking the US to press the Pakistani military regime to hold free and fair elections, a global strategic think tank has said instability and sectarian conflict would continue to worsen till President Pervez Musharraf [Images] ceded real power to civilians and removed curbs on moderate political parties.

"General Musharraf's marginalisation of moderate political voices has allowed religious parties to fill a political vacuum, and their increasing strength, if left unchecked, could erode regional stability," the Brussels-based International Crisis Group (ICG) said in its latest report on Pakistan.

"Countries like the US, which have tolerated authoritarian behaviour because they seek short-term security cooperation, should press the Musharraf government to hold free and fair elections, insist that it stop unlawful arrests and detention of opposition leaders and be prepared to cut aid if it does not," the ICG recommended.

The think tank, which has large number of former presidents, prime ministers, parliamentarians and experts on its board, said the military regime should also halt its "pressure tactics" on mainstream parties.

The ICG said moderate political parties in Pakistan bore the brunt of "state coercion" during the past few years, especially during the local elections.

"While Musharraf has restricted their political space, his government's tactics have also brought them (parties) together in an anti-military coalition, the Alliance for Restoration of Democracy, the largest opposition group in the National Assembly," the think-tank said.

It asked the Pakistan Government to "appoint an independent federal Election Commission, refine and liberalise party finance laws, lift the ban on students unions and allow parties to establish their own requirements for election of their leaders".

Observing that Pakistan People's Party and Pakistan Muslim League (Nawaz) had "regained some of the credibility they lost when they led governments", it said these parties were "the most effective safeguard against the religious lobby's anti-Western agenda and still present the most credible alternatives to authoritarian rule".

It said the political parties themselves "must step up and make changes to ensure their own survival".

"The parties need to promote internal discipline and accountability, better organise their grassroots base and allow more party workers, especially women and young people, to play meaningful roles in the decision making process," it said.