Reacting to the Federal cabinet's decision, Hussain told the BBC that at a time when the country is passing through a severe economic crisis, the government's decision would harm not only democracy but also stability in Pakistan.

The decision to replace Liaquat Ali Jatoi's Pakistan Muslim League (N) government with governor's rule had become a foregone conclusion after the second withdrawl of the MQM from its alliance with the League on Thursday. Without MQM's support it could not survive.

The Sharif government has also decided to take steps for extradition of Altaf Hussain, currently in London.

The government has decided to contact Britain for extradition ofHussain and already started collecting ``concrete evidences'' against the self-exiled MQM leader to support charges of serious crimes against him, The News daily reported quoting sources.

Hussain, who fled the country when the first army-backed operation was launched in Karachi during the first tenure of Nawaz Sharif in 1992, is wanted by the Pakistani police in several cases.

Sharif had met Hussain only last month during his London visit and struck a deal for revival of the weakening alliance between his party and MQM.

The cabinet's decision to impose governor's rule in Sindh, initially for 90 days, was taken under the chairmanship of Nawaz Sharif. But it is not going to be a simple governor's rule--the cabinet has also reportedly discussed giving the army powers under Constitutional provisions to maintain law and order in the province.

This would mean Sindh would be reverting to the 1992 position when the army launched a crackdown on the MQM in the name of cleanup.

Then, too, Sharif was the primeminister and, ironically, the MQM his party's alliance partner.

The announcement of federal rule was quickly followed by dozens of arrests, according to MQM workers in Karachi.

Meanwhile, other political parties condemned the imposition of governor's rule in Sindh with the main opposition, Pakistan People's Party (PPP) terming it as the beginning of the end of the Nawaz Sharif rule.