The country is reported calm, with shops and businesses open as normal.

A few Pakistani soldiers are continuing to guard key installations, and airports which were closed during the military takeover have reopened.

In Lahore, the streets are as busy as usual while in the capital, Islamabad, life appears to be carrying on as usual. Only a handful of troops are guarding the entrance to the main ministries in the city centre.

Military chief General Pervez Musharraf is consulting his aides on whether to install a caretaker government to lead the country to early elections or to impose martial law. A statement is expected later.

Prime Minister Nawaz Sharif is under what is being described as protective custody.

Click here to see a map of the key areas in Islamabad

Military spokesman Brigadier Rashid Qureshi told the BBC that there had been no ''pre-planning''.

The BBC's Diplomatic Correspondent Bridget Kendall: "Situation seems calm"

"This is not something that one expects to happen every day. It was a spontaneous reaction by the army after the wrong actions Mr Sharif had taken," he said.

Many people on the streets expressed relief at the overthrow of an increasingly unpopular government.

In a national television address, General Musharraf said the armed forces were firmly behind his dismissal of the prime minister.

General Musharraf acted to "prevent destabilisation"

He said the armed forces moved in "as a last resort to prevent further destabilisation".

"I request you all to remain calm and support your armed forces in the re-establishment of order."

He said he would deliver a lengthy policy statement "very soon".

But our correspondent Owen Bennett-Jones says the fact that he has not yet stated his intentions means that although the fate of Mr Sharif's government is sealed, it is not clear what it will be replaced with.

General Musharraf: "The armed forces are firmly behind me"

General Musharraf could opt for elections or a civilian caretaker government. Alternatively he might decide that he wants to rule Pakistan himself and impose martial law.

The EU has urged an immediate return to civilian rule, and announced it is delaying indefinitely the signing of a partnership agreement with Pakistan.

The governments of the United States and India have expressed concern at the developments in Pakistan, and the Indian army is believed to have been placed on high alert.

Secretary-General of the Commonwealth Emeka Anyoaku: "This is a matter of concern"

The two neighbours have been involved in a tense stand-off over the future of the disputed territories of Kashmir, and the testing of their recently-acquired nuclear capabilities.

The Commonwealth warned that it may suspend Pakistan if it does not restore democracy very speedily.

Secretary-General Emeka Anyaoku said what had happened "flies in the face" of democracy and "isolates the Pakistani regime".

The governor of Pakistan's central bank announced a bank holiday on Wednesday, apparently to arrest a massive outflow of foreign exchange from the country.

Army moves in

The army takeover began only minutes after General Musharraf was removed from his post.

Mr Sharif appointed the head of the country's intelligence service, General Ziauddin, in his place.

Earlier, state television went off air after soldiers scaled the gates of the building and took control. Mr Sharif had been scheduled to visit the television studios.

The BBC's Richard Galpin: "The country's future is uncertain"

Former Pakistan Prime Minister Benazir Bhutto said the army's action was a result of Mr Sharif's politicisation of the military. But she urged a return to civilian rule and called for fresh elections.

As troops moved through Pakistan's main cities, many people danced in the streets and waved flags.

The same mood has been reflected in the thousands of e-mails received by BBC News Online, with the majority highly critical of Mr Sharif.

Mr Sharif appointed General Musharraf last year when the former army chief, General Jehangir Karamat, stepped down after making remarks that were regarded as critical of Mr Sharif.

The army has ruled Pakistan for 25 of its 52-year history.

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