PAKISTAN'S Supreme Court has declared Prime Minister Yusuf Raza Gilani ineligible for office, plunging the country into fresh political turmoil.

It had previously found Mr Gilani guilty of contempt of court for refusing to reopen corruption cases against the president.

And yesterday, Chief Justice Iftikhar Chaudhry said: "Since no appeal was filed [against the conviction] ... therefore Syed Yusuf Raza Gilani stands disqualified as a member of the Majlis-e-Shoora [parliament]. He has also ceased to be the prime minister of Pakistan ... the office of the prime minister stands vacant."

However, Fawad Chaudhry, a senior aide of Mr Gilani, said only parliament could dismiss the prime minister.

While the decision is a big blow to the ruling Pakistan People's Party (PPP), it is unlikely to lead to the fall of the unpopular government.

The PPP and its coalition partners have the numbers in parliament to elect a new prime minister until the government's term ends early next year.

Legal expert Salman Raja said: "I don't see this as a major constitutional breakdown unless the PPP ignores this decision."

The Supreme Court directed the Election Commission of Pakistan to issue a notification declaring Mr Gilani ineligible for office. He is the first serving prime minister in Pakistan's history to be convicted by a court.

The political instability is likely to further distract Pakistan's leaders from tackling a array of problems fuelling public anger, such as power cuts, rampant corruption and a struggling economy.

The United States, which pours billions of dollars of aid into Pakistan, is likely to view the latest political saga with unease as it struggles to persuade Islamabad to re-open supply routes to Nato forces in Afghanistan.

Pakistan is seen as critical to US efforts to pacify Afghanistan after more than a decade of war against the Taliban but it is often described as an unreliable ally.

The decision puts Judge Chaudhry back at the centre of Pakistan's political turbulent stage.

He became a household name in Pakistan and gained international recognition in 2007 when he stood up to then President Pervez Musharraf over his legally questionable bid to hold on to power.

Since then, Mr Chaudhry has emerged as a major force in Pakistan, taking on the unpopular government over allegations of corruption, and more significantly the military, which has ruled the country for more than half of its 64-year history.

Analyst Hasan Askari Rizvi said: "The Supreme Court has expanded its domain once again. The court does not have the power to dismiss the prime minister, only the parliament does.

"It's the first time in Pakistan's history the Supreme Court has removed a prime minister and it has created a precedent."

The move comes during a difficult time for the chief justice. A Pakistani real estate tycoon yesterday accused Mr Chaudhry of turning a blind eye to his son's alleged corrupt financial practices.

Malik Riaz, who fashions himself as a billionaire philanthropist, said he had given almost $3.6 million (£2.3m) in bribes to Mr Chaudhry's son, Arsalan Iftikhar.

Mr Riaz, who has been accused of fraud, suggested Mr Chaudhry knew about the matter in advance of the Supreme Court's hearings on the issue this week. Arsalan Iftikhar has denied all allegations.