Bhutto, who is descended from former Prime Minister Benazir Bhutto, has agreed that her Pakistan Peoples Party (PPP) will be the junior coalition partner with several smaller parties.
In return they have secured the largely ceremonial role of president for Asif Ali Zardari, Benazir’s widow and former president nicknamed “Mr 10 percent” – given the alleged cut he took in government contracts.
The 68-year-old came to power on a sympathy vote after Benazir’s assassination and was jailed twice on charges related to corruption, drug trafficking and murder – although he never faced trial.
His 35-year-old son Bilawal Bhutto-Zardari is a PPP leader and was foreign minister in the coalition that ousted Khan two years ago.
But analysts predict Zardari will use it to prop up the PPP, apparently led by his son, as it takes part in a coalition facing a number of tough economic choices.
Ministerial roles for the new government have yet to be announced but the National Assembly should convene by February 29, when the coalition can be confirmed.