(Recasts, adds comment from intelligence chief)

By Robert Birsel

ISLAMABAD, June 7 (Reuters) - Pakistan has suspended powers that critics said "muzzled" television coverage of a political crisis that threatens stability in a country on the front line of a global anti-terrorism campaign.

President Pervez Musharraf, facing the biggest challenge to his authority since he took power in a coup eight years ago, was reported bemoaning government parties' failure to support him after he suspended the country's top judge on March 9.

Opposition parties calling for democracy and the reinstatement of Chief Justice Iftikhar Chaudhry held peaceful protests in several cities despite the detention of hundreds of activists by authorities trying to thwart rallies.

About 40 people were killed in clashes in Karachi last month.

While General Musharraf's political support base has been weakened in an election year, his backing from the army and the United States has been firm.

The United States would view with alarm instability in a nuclear-armed ally where al Qaeda leaders are believed to be hiding. Pakistan's help is also seen as crucial in the fight against the Taliban insurgency in Afghanistan.

Authorities, struggling to contain the anti-government campaign, have curbed the media, particularly television.

But Information Minister Mohammad Ali Durrani said on Thursday the government had suspended an ordinance introduced this week giving broad powers to shut broadcasters, pending a review.

Reporters Without Borders, a press freedom group, hailed the government's rethink on a decree that U.S.-based Human Rights Watch said muzzled broadcasters.

"The determined opposition of Pakistani journalists and the support of the international community forced the government to back down on its draconian plan," the reporters' group said.

The European Union had also welcomed the decision while raising concern about other "setbacks" to media freedom.

"DEFEND THE GOVERNMENT"

Earlier, a frustrated Musharraf berated ruling party members for failing to come to his support, the News newspaper said.

"I bluntly say you always leave me alone in times of trial and tribulation," the paper, citing an unidentified participant at a Wednesday meeting, quoted Musharraf as saying.

"I feel disturbed for the first time."

The News said Musharraf warned the party that Pakistan would find it harder to halt the spread of hardline Islamist influence, known as "Talibanisation", without his leadership.

A senior government official said the News report was exaggerated but the president had urged action.

"You should go to your constituencies and effectively defend and project government policies ... in the face of growing opposition propaganda," the official cited Musharraf as saying.

The crisis has led to speculation Musharraf might declare a state of emergency but he has repeatedly ruled that out and said elections at the end of the year would be on time.

The International Crisis Group think-tank said the United States should pressure Pakistan to ensure emergency rule is not imposed and to effect a peaceful transition to democracy.

Musharraf, who officials said was due to address the nation soon, wants to get re-elected by sitting national and provincial assemblies, perhaps in September, before they are dissolved for general elections.

But he is believed to be reluctant to give up his post of army chief as he is constitutionally required to.

Analysts believe Musharraf's main motive for seeking to dismiss Chaudhry stemmed from doubts the judge would be supportive in the event of constitutional challenges to the president's plans.

Various legal cases involving the judge are inching their way through court.

The head of military intelligence said in a statement submitted to the Supreme Court that Chaudhry wanted Musharraf to dissolve parliament and let him oversee elections months before he was suspended.

Chaudhry had earlier accused the intelligence chief of pressuring him to resign. (Additional reporting by Zeeshan Haider, Kamran Haider)

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