Bhutto's homecoming plans were announced at a chaotic news conference at Islamabad on Friday by the vice president of her Pakistan People's Party Amin Fahim, as party workers burst fire crackers and showered flower petals shouting 'Long Live Benazir! Prime Minister Benazir!'
Fahim said, "Bhutto will land in Karachi on October 18 and she will bring democracy to Pakistan.
However, the government said that the 54-year-old charismatic leader was free to come back but she will have to face corruption cases against her.
Bhutto's return after the presidential election, expected to take place before October 15, adds to the political turmoil in Pakistan.
Bhutto went on a self-imposed exile to avoid the graft allegations against her after Musharraf staged a coup and ousted Sharif in October 1999.
The PPP leader will return regardless of the outcome of her talks with president Musharraf, a party official said. Bhutto's demand that Musharraf quit as Army chief before contesting elections was one of the snags in the long drawn-out talks.
Fahim said Bhutto was not worried about meeting a similar fate as that of Sharif, who was unceremoniously packed off to Saudi Arabia when he arrived here on September 10. "We are ready for any eventuality and Bhutto's return will bring democracy to Pakistan," Fahim said.
A presidential spokesman declined to comment on Bhutto's return plans but confirmed that talks were underway with her for a possible political rapprochement.
Bhutto will land in her stronghold Karachi, the capital of Sindh province, where she will visit the mausoleum of Pakistan's founder Muhammad Ali Jinnah and her father Z A Bhutto.
It is not yet clear whether Bhutto is coming home under a tacit understanding with Musharraf.
Though the PPP leaders were silent about the timing of her return,it is scheduled after the controversial presidential elections in which Musharraf is seeking re-election for a five-year term. The government had earlier announced that the presidential elections will take place between September 15 and October 15.