ISLAMABAD, Nov 26: Interior Minister Aftab Ahmed Khan Sherpao on Friday denied that the release of Asif Ali Zardari was part of a deal between the government and the PPP.

Talking to reporters after a public meeting at G-10 Markaz here, the minister ruled out the possibility of an alliance between the government and the People's Party Parliamentarians.

The minister said: "So far, the PPP has not made any contact with the government for an alliance. But (if it wanted to) it can contact the government." He expressed the confidence that the government would complete its tenure and the next general elections would be held in 2007.

"I don't foresee mid-term polls in 2005," he added. "But, yes, there would be local government elections in 2005." The ruling alliance, he said, would field candidates in all districts of the country." Earlier, speaking at the public meeting, Mr Sherpao said the government had decided to give proprietary rights to slum dwellers.

"Slum dwellers have been neglected over the years and now the government has decided to construct roads, a better sewerage system and provide electricity, gas and drinking water there," the minister said. He reiterated the government's resolve to bring a positive change in the life of the poor.

Mr Sherpao said President Pervez Musharraf had fulfilled his promise to devolve power to the grass-roots and put in place a "genuine" democracy by holding general elections. He said a proposal to supply water to Islamabad from Jhelum or Indus rivers was under consideration.