According to sources, Pir Pagara and the former president agreed on forming new political alliance in the province.
They agreed to unify Muslim League factions and contacting different political parties to join their fold, added the sources.
Musharraf on Monday called on spiritual leader of Hur Jamaat, Pir Syed Sibghatullah Shah Rashidi alias Pir Pagara, the meeting is considered to be important in view of the future political landscape of not only Sindh, but the entire country.
Disgruntled leader of Pakistan Muslim League-Nawaz (PMLN), Ghous Ali Shah was also part of the meeting.
Both the leaders exchanged views on the overall situation of the country and changing political landscape.
A few days ago, General (R) Musharraf also held a meeting with Pakistan Peoples Party (PPP) leader, Makhdoom Amin Fahim.
ARY correspondent Kashif Hussain told that the recent meetings of the former president with key political figures were aimed at forming an anti-PPP alliance in Sindh.
Meanwhile, ARY News Islamabad bureau chief, Sabir Shakir also confirmed these reports and referred to it as a move to unify different factions of Muslim League in order to form a grand political alliance.
He added that the recent development will also cast its effects in Punjab, where Pakistan Muslim League-Quaid (PMLQ) and its allies are likely to become part of the alliance.
Former chief minister of Sindh, Arbab Ghulam Rahim has also been reported to be quite active in this regard.