From the report it appears that he has left the explosive issue of his successor to the MQM Rabita Committee. Or then again, he could just take back his resignation, which the party workers at Nine Zero are already chanting for.
On a side note, Altaf's phone-in resignation speech has been interrupted due to technical difficulties, namely the line getting 'cut'.
Geo is desperately trying to speak to the party leadership, but apparently they're all busy trying to get Altaf back on the phone, and the speakers.
There is a lot to be said about the intra-MQM factionalism that contributed (or even led to) the May 12 riots. That same factionalism is likley the main factor that lead to the April 9 riots and now Altaf's apparent resignation. It is no coincidence that these developments immediately followed the recent attempts of reconciliation between the PPP and the MQM.
UPDATE at 16:53 GMT (NB): There has just been an announcement that the MQM Nazims and the MQM MNA's will also resign en-masse unless Altaf Hussain withdraws his resignation. This is all pretty disingenuous.
UPDATE at 17:08 GMT (Ahsan): I don't think this as momentous a development as the headlines would suggest. Altaf Hussain is trying to send a costly signal, to use game theory parlance, of his preferences to cooperate with the PPP. Only it's not actually a costly signal; Altaf Hussain would just have us believe it is. He'll be back - if ever really left - within 24 to 48 hours following mass protests from the MQM faithful and a conciliatory and bhai-bhai phone call from Zardari. But for those of you who live in Karachi or Hyderabad, I'd stay indoors for a while.
UPDATE at 17:33 GMT (NB): Ahsan and Arif Rafiq are proven correct as Altaf withdraws his resignation following much crying and wailing from party supporters and Altaf Hussain. Nice one Altaf Bhai, you had me going for a minute. Albiet 10 days late.
My thanks to Ali Mate for the initial information and updates. And also for the joke above which I have shamelessly appropriated.
UPDATE at 18:35 GMT (Ahsan): Well, that was over quicker than a 16 year-old's first time. If you're going to put on a show, Altaf bhai, at least make it last a little bit longer. What am I going to do for entertainment on the weekend?