Tariq Azim, minister of state for information, said some sentiment coming from the United States, including from Democratic presidential hopeful Barak Obama, over the possibility of U.S. military action against al-Qaida in Pakistan "has started alarm bells ringing and has upset the Pakistani public."

But it appeared the motivation for an emergency declaration would be the domestic political woes of Musharraf, a key ally in the U.S. war on terrorism who took power in a 1999 coup.

His popularity has dwindled and his standing has been badly shaken by a failed bid to oust the country's chief justice _ an independent-minded judge likely to rule on expected legal challenges to Musharraf's bid to seek a new five-year presidential term.

The government's comments on a possible emergency declaration came hours after Musharraf abruptly announced he was canceling a planned trip to Kabul, Afghanistan, on Thursday to attend a U.S.-backed tribal peace council aimed at curtailing cross-border militancy by the Taliban and al-Qaida.

During a state of emergency, the government can restrict the freedom to move, rally, engage in political activities or form groups and impose other limits such as restricting the parliament's right to make laws or even dissolving parliament.

"These are only unconfirmed reports although the possibility of imposition of emergency cannot be ruled out and has recently been talked about and discussed, keeping in mind some external and internal threats and the law and order situation," Azim told The Associated Press.

"We hope that it does not happen. But we are going through difficult circumstances so the possibility of an emergency cannot be ruled out," he said.

Azim referred to recent Pakistani military action against militants in northwestern border areas that he said had resulted in the deaths of many soldiers.

No announcement had been made by daybreak Thursday. Legal experts and security officials began arriving at Musharraf's office in the capital, Islamabad, at midmorning for meetings on the issue, a presidential aide said. Attorney General Malik Abdul Qayyum said he had been summoned to meet Musharraf later Thursday, but he had not been told the reason.

The aide said Prime Minister Shaukat Aziz held talks with Musharraf before leaving Thursday morning to attend a "peace jirga" in Kabul with more than 600 Pakistani and Afghan tribal leaders together with Afghan President Hamid Karzai. Aziz was due back later Thursday.

Musharraf phoned Karzai on Wednesday to say he couldn't the jirga because of "engagements" in Islamabad. Afghan officials said the jirga would proceed as planned without Musharraf.

U.S. Secretary of State Condoleezza Rice spoke with Musharraf by phone in the early hours of Thursday, said an official in Washington who spoke on condition of anonymity due to the sensitivity of the situation. The official refused to discuss the content of the 17-minute conversation, which began shortly after 2 a.m. Thursday Pakistan time.

Earlier, State Department spokesman Sean McCormack said the U.S. understands Musharraf's decision to pull out of the meeting in Afghanistan.

"President Musharraf certainly wouldn't stay back in Islamabad if he didn't believe he had good and compelling reasons to stay back," McCormack said. "Certainly we would understand that."

Musharraf is under growing American pressure to crack down on militants at the Afghan border because of fears that al-Qaida is regrouping there.

The Bush administration has also not ruled out unilateral military action inside Pakistan, but like Obama, has stressed the need to work with Musharraf.

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