Musharraf, who launched the All Pakistan Muslim League APML in October, said he will return to Pakistan "before the next election".
"We are ready to contest elections," Musharraf told reporters at his apartment in Dubai.
"A little more time would be useful, as we are a new party. However, we will definitely try if the elections come early."
Prime Minister Yousaf Raza Gilani's government lost its parliamentary majority on Sunday when the Muttahida Qaumi Movement (MQM) announced it would sit on opposition benches over fuel price policies.
The opposition has not yet sought a no-confidence vote against Gilani in parliament but analysts say that is the biggest worry for the government. The next election is not due until 2013.
"For the government to survive, the PML-N or the PML-Q (parties outside the coalition) have to support them. Such support will have a lot of consequences," Musharraf added.
Musharraf said: "I must return (to Pakistan) well before the next elections, whenever that may be. I strongly believe the real momentum for my party will start once I reach Pakistan. So we are trying to create an environment for me to reach there."
Musharraf claimed he did not rule out alliances with other political parties in the future.
"Many parties want to be with us. But I want my party to get a simple majority in the next elections so that we do not have to rely on others." He said he had made "mistakes", including actions against The judiciary and imposing a state of emergency, but dismissed the possibility of another military takeover, saying he wanted to come to power with "the mandate of the public".
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