"It is not possible. Is another country involved?" he said in an interview with Le Figaro newspaper published on its website on Friday. "Pakistan is not Lebanon."

Bhutto's party has called for a UN inquiry into her death comparable to one into the 2005 killing of former Lebanese prime minister Rafik al-Hariri, whose death was blamed by many Lebanese on Syria. Damascus denies involvement.

Musharraf said Pakistan had its own institutions to manage the inquiry into Bhutto's assassination, and noted they would also be helped by British police.

He said there was a campaign by al-Qaeda to undermine Pakistan but denied his country was about to fall apart.

"They do not have the capacity to destabilize the country, but their suicide attacks create disorder and dishearten the population. However Pakistan is not on the verge of disintegration."

He also said Pakistan's economy would survive if the United States decided to cut financial aid -- as suggested by some politicians unless Pakistan does more to fight terrorism and restores full civil rights.

"Do you think Pakistan would die if it didn't receive this money? Our economy is doing well," he said.