The Presidential Palace said the ex-finance minister had a meeting with President Karzai this evening before announcing his withdrawal from the contest, slated for Thursday.
Arsala urged his supporters to vote for the incumbent president in the election featuring more than 30 candidates.
On the occasion, Karzai thanked his former minister and hoped his decision would a go a long way in promoting
"In an attempt to bring stability and progress to the war-devastated country, I decided to contest the polls. But after noting that our objectives are the same, I opted for retiring in favour of President Karzai," Arsala remarked.
Earlier in the day, four contenders pulled out of the race and put their weight behind President Hamid Karzai. The candidates including Hakim Torsan, Muhammad Yasin Safi, Dr. Muhammad Naseer Anis and Shah Mahmood Popal announced their support to Karzai hours before the election campaign ended at midnight.
Yasin Safi said he joined the election race as it was the right of everyone to participate in the electoral process. "We accepted Karzai's leadership and announced joining his camp after thoroughly studying his policies for two months."
Dr. Anis, another candidate, said he retired in favour of Karzai after meeting him twice. "Karzai has agreed if he retains the presidency, he will appoint people on merit and take effective measures for developing the country."
Hakim Torsan said: "
Shah Mehmood Popal, head of the National Peace Party, also announced withdrawal from the contest in favour of Karzai. He said Karzai had eight years of experience and could work in a better way in national interest.
With the withdrawal of these contenders from the presidential race, the number of aspirants has come down to 32.
mnm/ma/mud/frm/pr