LAHORE, Pakistan — President Gen. Pervez Musharraf on Friday swore in a caretaker administration and declared he had "introduced the essence of democracy in Pakistan," the day a senior U.S. envoy arrived in the capital to urge the end of emergency rule.

The government also lifted the house arrest of opposition leader Benazir Bhutto, who has urged fellow opposition leaders to join her in forming an alliance to replace Musharraf and govern until parliamentary elections expected by Jan. 9. Police said the detention order against Bhutto was withdrawn overnight.

Scores of guards and barricades remained for Bhutto's own protection but she was free to move around, said Zahid Abbas, a senior police official. Bhutto, a two-time former prime minister who returned from exile last month to launch a political comeback, was detained Tuesday to prevent her from leading a protest against Musharraf's Nov. 3 declaration of a state of emergency.

Bhutto immediately reiterated her call for Musharraf to quit and said his sidelining of moderate opponents had allowed the rise of Islamic extremism.

Bhutto has the highest profile among the thousands of political activists who have been detained in a government crackdown on dissent that sparked an outcry at home and abroad.

Meanwhile, Asma Jehangir, head of Pakistan's main human rights organization and a former U.N. official, was also released from house arrest Friday.

U.S. Deputy Secretary of State John Negroponte landed in the capital, Islamabad, for talks on the deepening political crisis, U.S. Embassy spokesman Elizabeth Colton said. Details of his schedule were not immediately available.

The State Department said he expected to meet "with whomever he wants to see," including Musharraf and opposition politicians.

President Bush "wants the state of emergency to be lifted. And it is up to President Musharraf. He has the responsibility to help restore democracy to the country," White House Press Secretary Dana Perino said.

Musharraf, who seized power in a 1999 coup, insists he is still moving toward a restoration of democracy and civilian rule that Western governments believe could help stabilize the nuclear-armed country as it battles rising Islamic extremism.

At a ceremony in the capital, Islamabad, a somber-faced Musharraf said the outgoing Cabinet should be proud of having helped turn around the economy and move Pakistan back toward democracy.

The interim government, headed by Musharraf loyalist and former Senate chairman Mohammedmian Soomro, is charged with guiding Pakistan through the parliamentary elections.

Musharraf insists he declared the emergency to prevent judicial interference and the rising threat from militants linked to the Taliban and al-Qaida from derailing the vote.