Tripartite agreement In 1972, as the opposition leader, Wali Khan was contacted by
Zulfikar Ali Bhutto, who wanted to lift martial law and set up a new constitution. Wali Khan's negotiations with Zulfiqar Ali Bhutto led to the signing of an agreement with the government in 1972, called the Tripartite Agreement. The agreement led to the lifting of martial law and removal of the ban on the
National Awami Party. This led to the formation of
National Awami Party coalition provincial governments in the NWFP and
Baluchistan. Despite the initial positive start, the agreement rapidly began to unravel due to the growing animosity between Khan and Bhutto. attacked a public opposition rally at the Liaquat Bagh in the town of
Rawalpindi and killed a dozen people; many more were wounded by their automatic gunfire. Wali Khan narrowly escaped a bullet during the attack. Public anger amongst ethnic
Pashtuns ran high, as almost all the dead and most of the wounded were from the NWFP and were mostly members of the National Awami Party. The enraged party workers and followers wanted to parade the dead bodies on the streets in
Peshawar and other cities of the province, and provoke a full scale confrontation. Wali Khan rejected this notion and held back his infuriated party cadres, escorting the dead bodies to Peshawar; he had them buried quietly and solemnly with their bereaved families. despite reservations, Wali Khan agreed to a compromise with the precondition that issues of Judicial independence and provincial rights would be granted by the federal government after transition periods of five and ten years, respectively. However, he succeeded in incorporating Hydel and gas royalties for NWFP and Baluchistan as well as having obligated the Federal government to ensure equal improvements for all regions in Pakistan. Due to Bhutto's party's large majority in Parliament and opposition divisions, Khan was critically unable to stop Bhutto from concentrating greater power in his office. It was during this period that Wali Khan supported Bhutto's move toward the release of
prisoners of war captured by India in the 1971 war and full normalisation of relations through the
Simla peace agreement.
Arrest and Hyderabad tribunal In 1974, after
Zulfiqar Ali Bhutto's close ally and governor of the
North-West Frontier Province Hayat Sherpao was killed in a bomb blast, Bhutto was convinced that Abdul Wali Khan,
Khan Amirzadah Khan and the National Awami Party were responsible, and in retaliation the federal government banned the National Awami Party. It also ordered the arrest and imprisonment of most of its senior leadership, including Wali Khan. The widely discredited
Hyderabad tribunal subsequently put Wali Khan and his colleagues on trial. Refusing to participate in what he felt was a farcical trial, Wali Khan did not take part in his own legal defence. As civil unrest was widely spread the country, the power struggle between PNA, Pakistan Armed Forces and Bhutto, including his colleagues, was triggered and, Wali Khan saw Bhutto's actions as his last stand. In an open public seminar, Wali Khan quoted that "There is one possible grave for two people ... let us see who gets in first". This book was written gradually over many years and included critical and declassified British Imperial documents before the creation of Pakistan. Wali Khan, citing those documents, alleged that Pakistan's formation was done as part of a deliberate "
divide and rule" policy of the British and that
Muhammad Ali Jinnah (Pakistan's founder), along with various religious leaders and feudal landlords, acted on their behalf. The ANP, under Wali Khan's presidency, contested the 1988 national elections in alliance with former rivals the Pakistan Peoples' Party of
Benazir Bhutto (Zulfiqar Ali Bhutto's daughter). The ANP's success in the elections was limited to the NWFP and even then only certain regions of that province. In addition, Wali Khan lost his provincial seat to a PPP candidate, a sign of the decline in the ANP's popularity. The ANP-PPP alliance collapsed in 1989 after a perceived snub by PPP Prime Minister Benazir Bhutto and a dispute over ministerial posts and the governorship of NWFP. After joining the opposition, Wali Khan started talks with the Army backed IJI (Islamic Democratic Alliance) and joined the alliance before the 1990 general elections. ==Post-retirement politics==