KARACHI, Aug 23: Asif Ali Zardari on Monday claimed that the system was degenerating very fast due to the 'bunker mentality' of the regime which knew nothing except conquering its own people.

He was talking to newsmen on Monday at the special court in the central jail where he had been brought in connection with the hearing of a case against him. His son, Bilawal, was sitting quietly next to him.

Mr Zardari observed that Gen Pervez Musharraf was loosing grip on the government, and maintained that the government of Mr Shaukat Aziz would not complete its term. Elaborating, he said he foresaw dissolution of the assemblies. In his earlier statement, Mr Zardari had predicted dissolution of assemblies by October this year.

In reply to a question about the reported differences between PPP and ARD over putting up a candidate for the slot of prime minister against Mr Aziz, Mr Zardari hoped that ARD components would finally work out a strategy that would be beneficial for the alliance.

With regard to MMA, he remarked that "mullahs would be judged by their deeds." He believed that by abstaining in the vote against government candidate would amount to giving a walkover.

Replying to a question about an emphatic victory for Mr Aziz in Tharparkar by-election, he said "serious observers consider it a joke because they are still unable to swallow that Mr Aziz got more than 150,000 votes from a constituency where patches of small settlements are located miles apart in the saline desert territory."

He, however, pointed out that the outcome of the election had been a foregone conclusion because of, what he claimed, the government's pre-poll manipulations. When asked why did Gen Musharraf opt for Mr Shaukat Aziz for the slot of prime minister, Mr Zardari said: "Perhaps Gen Musharraf needed more support in the United States."

He strongly opposed the reported military operation in Balochistan and alleged that Gen Musharraf was, in fact, damaging Punjab's position by resorting to move in Sindh and Balochistan that were detrimental to the interest of their people.

He claimed that the PPP was the only party which respected democratic and representing aspirations of people, adding that about 90 per cent of the country's political parties were toeing the Establishment's line.

Mr Zardari deplored the reign of terror let lose on the people of Iraq. He accused the government of trying to maintain its stranglehold by exploiting law and order situation.

When asked to comment on the Muttahida Qaumi Movement's claim that some military officials were conspiring to create another faction within the party, Mr Zardari said: "The Muttahida is in the government. So why cannot it get a judicial commission set up in this regard?"

About the existence of an 'intelligence wing' of the MQM, Mr Zardari said that he could not recall any political party having such a wing. He said that it was obvious from the reports that there was something wrong and both sides were being supported by some elements in the rival formations of the intelligence agencies.