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ISLAMABAD, April 9 (Reuters) - Pakistan will hold a referendum on April 30 to decide whether military President Pervez Musharraf should stay in power for another five years, state radio said on Tuesday.

Musharraf, who took power in a bloodless coup in October 1999, said when he announced the referendum last Friday he wanted to stay in power to ensure his economic, political and social reforms were not reversed by corrupt politicians.

But he promised to respect a Supreme Court ruling which demanded he hold parliamentary elections by October.

All major parties have denounced the referendum as unconstitutional and undemocratic, saying the constitution demands the president be elected by members of the bicameral parliament and four national assemblies.

The Commonwealth, which suspended Pakistan after the coup, also reacted coolly, with Secretary-General Don McKinnon saying the referendum did not match a "road map" Musharraf had promised to follow for the restoration of democracy.

But the United States, which has embraced Musharraf as a key strategic ally since he threw his weight behind the U.S.-led war on terrorism, has refrained from criticising the plan.

Embassy sources quoted visiting U.S. Assistant Secretary of State Christina Rocca as saying on Monday it was up to Pakistani people and institutions to decide if the referendum was legal and constitutional.

Musharraf has dismissed the criticism, arguing the constitution allows him to call a referendum on "important national issues".

The announcement of a date for the referendum came just before Musharraf was due to launch his campaign with a speech in the western city of Lahore, the home town of the man he overthrew and then sent into exile, former Prime Minister Nawaz Sharif.

The daily News reported on Tuesday Lahore's residents had been "unceremoniously off-loaded" from thousands of public transport vehicles, which were then impounded by police to ferry people to the Musharraf rally.

Analysts say Musharraf is likely to win the referendum but only by mobilising the machinery of state and keeping a tight lid on political party activity in coming weeks. 1136 090402 GMT

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