Pakistani President Pervez Musharraf says an "era of democracy" has begun in Pakistan.

He spoke early on Sunday at a military parade celebrating Pakistan's national day.

"Brothers and sisters, you are seeing that a new era of real democracy has begun."

Flatbed trucks rolled past Musharraf's viewing stand and military helicopters swooped past him, flying huge Pakistani flags and spewing decorative, multicoloured smoke.

With regard to the newly appointed candidate for prime minister by Pakistan People's Party, President Musharraf expressed his hope for the upcoming administration.

"I hope that this government will maintain the political peace and Pakistan's fast pace of socio-economic development."

On Saturday, the opposition Pakistan People's Party or PPP nominated former parliament speaker Yousaf Raza Gilani as its candidate for the country's next prime minister.

PPP won the most seats in last month's parliament elections, yet not enough to qualify to govern alone.

As a result, PPP is expected to form a majority coalition government with the party of the ex-prime minister Nawaz Sharif.

A confirmation vote is scheduled for Monday in parliament, and the prime minister would be sworn in a day later.