Exiled former prime minister Nawaz Sharif has become the most popular leader in Pakistan in the wake of the Bhutto-Musharraf rendezvous, according to the country's intelligence agencies.

"Former prime minister Benazir Bhutto's [Images] desperation to clinch a 'power-sharing deal' with President Pervez Musharraf [Images] has made Sharif the most popular leader in Pakistan," a senior government official told The News, quoting recent reports prepared by intelligence agencies.

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According to the official, Sharif's recent victory over the government in the Supreme Court -- which allowed the deposed premier and his brother Shahbaz to return to Pakistan after seven years in 'forced' exile -- has also helped in the rise of his popularity graph.

"If he returns to the country according to his announced schedule, he would get an unprecedented reception, particularly in the Punjab province. But, if Sharif fails to fly back home as hinted by some ruling party leaders, his ascendancy would vanish," the unnamed official said.

In their assessment of the ground situation, the intelligence agencies have indicated that the ruling Pakistan Muslim League as well as Bhutto's Pakistan People's Party are likely to suffer a setback in the general elections slated for later this year in the Islamic nation.