DATE=10/12/1999 TYPE=CORRESPONDENT REPORT TITLE=PAK COUP (L-SECOND UPDATE) NUMBER=2-254947 BYLINE=SCOTT ANGER DATELINE=ISLAMABAD CONTENT= VOICED AT: INTRO: Pakistan's army has removed the prime minister and arrested him and senior members of his government. In a nation-wide address on state-run television, Pakistan's Army Chief accused the dismissed government of Nawaz Sharif of destroying state institutions and bringing the country's economy to the edge of collapse. From Islamabad, VOA's Scott Anger reports. TEXT: Dressed in battle fatigues, General Pervez Musharraf appealed to the Pakistani people early Wednesday morning to stay calm and to support his removal of Prime Minister Nawaz Sharif. General Musharraf says the military coup was a last resort to prevent any further destabilization in the country. /// MUSHARRAF ACT /// Not only have all the institutions been played around with, and systematically destroyed, the economy too is in a state of collapse. We are also aware of the self- serving policies being followed which have rocked the very foundation of the federation of Pakistan. /// END ACT /// The military coup followed a dismissal order by Prime Minister Sharif to remove Pakistan's powerful military leader. Army troops took control of the country immediately after the prime minister's order. General Musharraf staged the coup as he flew back to Pakistan from an official visit to Sri Lanka Tuesday afternoon. Mr. Sharif, along with other senior members of his government and the country's intelligence chief, have been arrested and are being held at an unknown location in Islamabad. Pakistanis took to the streets, waving flags and dancing, celebrating the fall of Nawaz Sharif's government as troops continue to stand guard throughout the country. Tensions have been growing between Prime Minister Sharif and General Musharraf since the withdrawal of Pakistani forces from Indian Kashmir under U-S pressure earlier this year. Pakistan's military was widely seen in the West as being behind the fighting in Kashmir, which triggered the worst confrontation between Pakistan and India in 30 years. The Army viewed the prime minister's decision to withdraw from Indian Kashmir as a betrayal. There have been no reports of resistance or violence. International telephone service has been restored in the capital after a disruption of several hours, and a bank holiday has been announced on state-run television. In his brief television appearance, General Musharraf did not issue a policy statement regarding the future of Pakistan and did not outline any plans for the country. He has promised to make such a statement soon. (Signed) NEB/SA/TVM/gm 12-Oct-1999 19:27 PM EDT (12-Oct-1999 2327 UTC) NNNN Source: Voice of America .