LONDON, March 22: The government of Pakistan is estimated to have squandered about a million pounds, pursuing the Surrey Palace case for almost seven years. The price of the Rockwood estate, bought in 1995 by Mr Zardari presumably for £4.35 million, is now said to be worth over $7 million.

Under the settlement arrived at between Mr Zardari and the government as part of the bargain envisaged in the National Reconciliation Ordinance (NRO), the latter has conceded that it will cooperate with the former to enable him to obtain any of the asset (now no more under litigation) without any claim on its part.

The Pakistan government gave up all its claims on the so-called Surrey Palace sales proceeds on Thursday and instructed its lawyers in the UK to withdraw the case it had instituted against Asif Zardari in the Queens Court for recovery of the said proceeds.

Mr Baseer Qureshi of the National Accountability Bureau (NAB) and advocate Mr Shehzad, who arrived here early last week, issued the instructions on behalf of the government following which an agreement to the effect was signed between the lawyers of Mr Zardari and those representing the government of Pakistan.

Attorneys of the two parties, Saunders LLP on behalf of Mr Zardari and Edwards, Angell, Palmer and Dodge on behalf of government of Pakistan signed and submitted the agreement to the court on Thursday.

The court is likely to decide the matter on Tuesday, March 26.

After having consistently refused for almost nine years to accept that he had bought the Rockwood estate, Mr Zardari admitted in 2004 to owning the so-called Surrey Palace when Pakistan authorities staked its claim on it in the British courts alleging that it was bought with questionable funds.

The Rockwood Estate includes a 20-room mansion and two farms on 365 acres of land.

Towards the end of 2003, a liquidator for the three Manx companies (Romina Properties, Winkford Farm and Parsonage Farm) reached a compromise with various claimants for disposing of the proceeds of the Rockwood sale. After paying creditors, the remaining money would now go to Mr Zardari.