Pakistan's new premier sworn in

Mr Hussain is president of the ruling Pakistan Muslim League

Chaudhry Shujaat Hussain has been sworn in as the new prime minister of Pakistan.

He replaces Zafarullah Khan Jamali, who resigned on Saturday.

The ailing Mr Hussain, 58, is expected to be replaced within two months once finance minister Shaukat Aziz finds a seat in the assembly.

Observers say the change will have little impact on policy, as real power resides with President Musharraf, who seized power in a 1999 military coup.

Default claims

Mr Hussain was sworn in by President Musharraf within a day of his election as the leader of the country's National Assembly.

The president also swore in a 27-member cabinet at the presidential palace in Islamabad.

We will take solid steps for economic and political stability and enlightened moderation launched by President Pervez Musharraf Chaudhry Shujaat Hussain Profile: Chaudhry Shujaat Hussain

The key posts of foreign affairs, defence and the interior were unchanged and Mr Aziz remains finance minister.

The opposition Pakistan's People Party (PPP) and the Pakistan Tehreek-e-Insaaf (Movement for Justice) have alleged that Mr Hussain, an industrialist and politician, should not be premier as he has defaulted on bank loans.

"He is a bank defaulter and a bank defaulter is ineligible for the post," PPP general secretary Raja Pervez Ashraf told AFP news agency.

The election of Mr Hussain - president of the ruling Pakistan Muslim League and an ally of President Musharraf - was seen as a foregone conclusion.

The opposition says the way the succession has been handled underlines the lack of real democracy in Pakistan.

Moderate Islam

Mr Hussain has said that he "will continue the policies of President Musharraf."

Reports say there was a rift between Jamali (left) and Musharraf

He has said his priorities will be fighting terrorism and lawlessness, and pursuing the president's goal of moderate Islam.

Mr Aziz will take over as premier for the rest of the term once he is elected to the National Assembly, ruling party officials say.

According to Mr Hussain, this is being done on the instruction and advice of President Pervez Musharraf, who wants the country's leadership to be in the hands of someone capable of turning around the economy.

So far there has been no official word on why Mr Jamali had to resign.

Mr Jamali had put forward Mr Hussain's name - an attempt, correspondents say, to try to dispel the impression of any internal party differences.

Repeated statements from the government denied any such differences.

Mr Hussain has said all decisions were taken with consensus and on the advice of President Musharraf.