Barring differences over the reinstatement of deposed Supreme Court judges, Pakistan's main opposition parties have made 'substantial progress' to hammer out a charter of demands for President Pervez Musharraf [Images] for withdrawal of their threat to boycott the January 8 polls.

A committee formed by former premier Benazir Bhutto's [Images] Pakistan People's Party and her political rival Nawaz Sharif's Pakistan Muslim League-Nawaz party has completed 80 per cent of its work on drawing up the charter of demands, which is expected to be completed on Thursday.

"We have almost accomplished 80 per cent of our work through consensus and made substantial progress through a spirit of accommodation," PML-N spokesman Ahsan Iqbal, a member of the committee, said.

"We decided to complete the work on Thursday, when there will be the final meeting of the committee," he told Dawn News channel.

Sources said the committee, which began its consultations on Tuesday, has developed consensus on several issues. These include the need to change the caretaker government, a guarantee that the emergency would be ended by December 16, suspension of local governments during the January 8 general election, a ban on using state resources during campaigning, restructuring the Election Commission and immediate release of all political prisoners, sources said.

The issue of the recognition of Musharraf as President would be left to the next 'genuinely-elected Parliament', the sources said.

Sharif and Bhutto have warned that they will boycott the January 8 general election if their conditions are not met.

Leaders from both parties have admitted that the issue of reinstating Supreme Court judges, who were sacked for not endorsing the emergency, remains the main issue holding up unanimity on the charter.

While Sharif has been insisting on the reinstatement of deposed judges who did not endorse the emergency, Bhutto has so far committed herself only to ensuring the independence of the judiciary.

PML-N leader Ishaq Dar, a close aide of Sharif, admitted this was the 'basic point of discord' between the two sides but said he was hopeful that they would reach an understanding soon.

Iqbal said the reinstatement of the sacked judges and restoration of the pre-emergency judiciary are the main issues for the PML-N to ensure rule of law and democracy.

Sharif and Bhutto met for the first time since their return to Pakistan from exile on Monday and agreed to join hands to set conditions to ensure free and fair polls.

The move marked a compromise as Bhutto has been insisting that the PPP would participate in the polls 'under protest' while Sharif has been pushing for a boycott.

A boycott by both leaders would severely dent the credibility of the polls. The government, however, is unlikely to concede the demands that are likely to be made by the opposition.

The law ministry on Tuesday issued orders to sack deposed Supreme Court Chief Justice Iftikhar Muhammad Chaudhry and two others, including lone Hindu judge Rana Bhagwandas, from the apex court and to retire 24 High Court judges. All of them had refused to endorse the emergency.

Meanwhile, a Pakistani anti-corruption court has asked the government to inform it by January 12 whether it intends to prosecute Sharif and members of his family in graft cases.