(Releads with Musharraf said to be going to China on Thursday)

By Augustine Anthony

ISLAMABAD, Aug 6 (Reuters) - Pakistan's President Pervez Musharraf delayed a visit to China on Wednesday by a day, the foreign ministry said, as opponents in the coalition government consulted over his possible impeachment.

Musharraf had been due to fly on Wednesday to attend opening ceremonies for the Beijing Olympics and meet China's leadership but he put off his departure hours before he was due to leave.

Pakistan values its close relationship with China as it provides a regional counterweight to old rival India, so it was highly unusual to put off the visit at such short notice.

His change of plans prompted speculation that he did not want to leave Pakistan without knowing the outcome of talks between leaders of the civilian coalition in Islamabad.

Asif Ali Zardari, the head of the ruling alliance, was meeting with former prime minister Nawaz Sharif to resolve their differences over the issues of Musharraf's impeachment and the restoration of Supreme Court judges who were dismissed by the president last November during a brief period of emergency rule.

With the talks running into Wednesday night, Foreign Ministry spokesman Mohammad Sadiq, who earlier said the China trip was cancelled, said Musharraf would go on Thursday instead.

Musharraf, a U.S. ally who came to power as a general in a 1999 coup, has become overwhelmingly unpopular.

His allies were defeated in an election in February that resulted in a civilian coalition government led by the party of the late Benazir Bhutto, a two-time prime minister who was assassinated while campaigning last December.

PRESSURE TO QUIT

Despite the loss of parliamentary support, Musharraf has resisted pressure to quit and has insisted that he was willing to work with the new civilian government.

Musharraf has said he will not use presidential powers to dismiss the parliament.

Sharif, the prime minister Musharraf overthrew, wants wheels set in motion to impeach him. But Zardari has until now warded off a confrontation with Musharraf, who neither the army nor the United States want to see humiliated.

Sharif withdrew his party's ministers from Prime Minister Yousaf Raza Gilani's cabinet in May but did not go as far as pulling out of the coalition completely.

After a first round of talks with Sharif on Tuesday a spokesman for Zardari's Pakistan People's Party told reporters the pair had reached a consensus, prompting media reports that they were ready to seek Musharraf's impeachment.

The uncertainty has taken a toll on Pakistani markets, with the main share index at its weakest in nearly 23 months and the rupee headed back towards all-time lows posted in early July.

The main Karachi Stock Exchange index <.KSE> closed 3.6 percent down on Wednesday due to investors's fears of an impending clash between the coalition and the president, and has fallen 31 percent since the start of the year.

Investors have doubts over whether the coalition can handle multiple crises, including widening trade and fiscal deficits, inflation at a three-decade high, power outages, food and fuel shortages, and rising militancy across the northwest. (Additional reporting by Kamran Haider; Writing by Simon Cameron-Moore; Editing by Angus MacSwan)

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