DHAKA, 27 April 2007 — Bangladesh interim government’s U-turn on plans to exile the two former premiers has given a reason to political parties to rejoice.

The two feuding political parties led by former prime ministers Hasina Wajed and Khaleda Zia proclaimed a “people’s victory” yesterday after the army-backed government lifted a ban on Hasina returning home. They also expressed relief after the government confirmed that Khaleda Zia, the most recent prime minister, is not being pressed to go into exile.

“It’s a people’s victory,” said Hannan Shah, a senior leader of Khaleda’s Bangladesh Nationalist Party (BNP).

Local media said Khaleda had been under virtual house arrest, but the government says her movements are not being restricted.

The army-backed caretaker government issued an order last week barring Hasina from returning to Bangladesh after a holiday in the United States. She was prevented from boarding a plane in London on Sunday, but is expected back in Bangladesh soon.

“It has been reasserted that people’s democratic and fundamental rights cannot be robbed,”Abdul Jalil, general secretary of Hasina’s Awami League, said.

The government, however, appeared to threaten the women with corruption charges if they stayed in the country.

Hasina still faces a charge of aiding and abetting the killing of several people during a violent political protest in October.

The caretaker government did not offer a detailed explanation for its climb down, though the handling of the two female leaders had been heavily criticized at home and abroad.

“Not necessarily all the decisions by the government would be right,” government adviser for law and information Mainul Husein told private television Channel-I yesterday. “They change with the changing situation. It is not a weakness, rather it proves the government’s courage.

“The two ladies staying in the country will make no difference to the government’s agenda (to organize a free and credible election),” he added.

Chief Election Commissioner A.T.M. Shamsul Huda told a meeting with civil society leaders yesterday no electoral reforms would be implemented without talking to political parties.

The commission earlier said it hoped the government would relax a ban on indoor political activities from early May, allowing talks between the commission and parties. But pressure remains on Khaleda and Hasina.

The authorities have asked the central bank to provide information on all bank accounts maintained by the two women in commercial banks.

“We have asked the commercial banks to provide all banking information of Khaleda Zia and Hasina Wajed,” an official of the Bangladesh Bank said yesterday.

The National Board of Revenue asked commercial banks separately to furnish account details for 83 other individuals.

Bangladeshis said they were surprised by the government’s U-turn over the two rival leaders, whom it apparently wanted out of the country while conducting a crackdown on corruption to prepare for a free and fair election.