Vidya Prasarak Mandal

An American detained for shooting two Pakistanis is shielded by diplomatic immunity, a Pakistani official has said, but local courts are likely have the final say in a case that has ignited a bruising dispute between two strategic allies.

After more than two weeks of resistance to US calls for conferring diplomatic immunity on Raymond Davis, the government on Wednesday decided to recognise him as a diplomat, paving the way for his return to the US. “This is a policy shift but one that we believe is in Pakistan’s best interest,” the official told the Financial Times.

Mr Davis shot dead two Pakistanis last month in what he said was self-defence during an armed robbery. The Lahore high court was to hold another hearing in the case on Thursday, during which the US is expected to present a petition to certify that Mr Davis has diplomatic immunity and should be released.

News of a likely end to what has become a serious strain on Pakistan’s relations with the US, came as Senator John Kerry, the chairman of the US Senate’s foreign relations committee, ended a trip to the country.

Though US officials portrayed Mr Kerry’s trip as a broader exercise to strengthen one of Washington’s most critical relationships in support of its campaign on terror, Pakistani officials said the visit was mainly about the issue of Mr Davis’s arrest.

Yusuf Raza Gilani, the prime minister, is today expected to meet his cabinet following the policy reversal on Mr Davis. Pakistan’s Islamic hardliners have promised to resist any step to allow Mr Davis to leave the country.

The fragile government in Islamabad, mired in a battle against militants, struggling with a stagnant economy and fearful of a backlash from its people, appeared willing to go only so far to placate the US.

“We are facing difficult decisions. There is a political price,” Mr Gilani said. “If we make one decision, the people won’t support it. If we make another decision, the world doesn’t support it. We’re caught between the devil and the deep blue sea.”

The first signs of the ability of Islamist politicians to mount resistance on the streets may come on Friday after weekly prayers.

“We will not sit back idly. We will do everything possible to stop Raymond Davis from leaving Pakistan. The cause of justice must be served,” said Liaquat Baloch, a senior leader of the Jamaat-e-Islami, the main Islamic political party.