The decision ends weeks of intense speculation and drama regarding the future of the chiefs of the two major political parties in the country, who the government reportedly wanted to send into exiles as part of its political reforms.

The decision, welcomed by both political parties, was taken by the caretaker government after two days of emergency cabinet meetings chaired by Chief Adviser Fakhruddin Ahmed, following mounting international and local demands for the rollback.

A home ministry press note last night said, "The government issued a press note as a special security measure and in the people's interest on April 18, 2007 in light of recent comments and activities of Awami League President Sheikh Hasina and her concerns for personal safety."

"It was clearly stated in the mentioned home ministry press note that the measure was temporary. But, in light of opinions expressed in the media and in different quarters on the matter, the government has decided to withdraw the measure," the new press note stated.

Hasina yesterday told a private television channel that she will be returning home as soon as possible.

In a separate home ministry press note on Khaleda, the government yesterday said, "It has come to the government's attention that a number of news mediums recently have been publishing speculative news and opinions regarding BNP Chairperson Khaleda Zia going overseas and her freedom of movement."

"The government's clear statement in this regard is that the government has never pressured and is not pressuring Khaleda Zia regarding overseas trips or for leaving the country," the press note stated.

"The government also did not impose any restriction on her movement," read the press note.

This was the first public statement by the government on Khaleda's future after advisers had kept mum over the past week on whether the former prime minister would remain or leave the country.

Law Adviser Mainul Hosein told reporters last night, "It does not really matter to this government whether they [Khaleda and Hasina] are in the country or not."

"If there are allegations of corruption against them, they will be prosecuted," he added.

Yesterday, the Bangladesh Bank asked all commercial banks to provide all banking information of Khaleda and Hasina.

On April 22, British Airways refused to allow Hasina board a flight to Dhaka from London citing the April 18 government press note directing the immigration and aviation authorities, and airliners not to allow Hasina to return home.

The press note stated that the government feared Hasina could threaten the country's economy, security and public order as, in its own words, reflected by her recent comments.

On Tuesday, Hasina's lawyers moved to file a writ petition with the High Court to challenge the legality of the government press note imposing restrictions on her return home.

Hasina was scheduled to return to the country on April 23, but in a dramatic few days starting from April 10 she at first brought her return forward to April 14 and later pushed it back again to April 23 under government 'requests'.

While, Saudi Arabia reportedly refused to give Khaleda Zia a visa unless she appeared in person and expressed her voluntary desire to go to the kingdom, after days of speculation in the media that she would leave the country with her younger son Arafat and his family, and the wife, daughter and mother-in-law of her elder son Tarique Rahman.

On April 19 a BNP leader filed a writ petition with the High Court challenging the reported confinement of Khaleda Zia to her house and seeking a directive from the court for not sending her abroad.

On the same day, a Dhaka court had issued an arrest warrant against Hasina in connection with the Paltan killing case, but dramatically suspended the warrant the next day saying there was insufficient evidence.

Later on the same day, the High Court issued a rule on the government to explain within five days why the court should not direct the government to produce Khaleda before the court to prove that she is not confined to her house.

Since the restriction was imposed on Hasina's return, British Foreign Secretary Margaret Beckett wrote a letter asking the Bangladesh government why Hasina would not be allowed to return. A US spokesman yesterday said the democratic process in Bangladesh could be threatened if the government did not handle the 'situation' properly.

In the meantime at least 40 leading intellectuals of the country, in separate statements, demanded that the two top leaders not be exiled and said it would not contribute to the democratic process.

In an immediate reaction to the government's latest press note, Hasina, a former prime minister, told a private television channel last night, "I am very happy that I will be able to return to my people."

"I am happy with the decision and waiting for the time when I will be able to return home," said an elated Hasina adding that she had many things to say about the restrictions. "But as the restriction has been withdrawn, I will not say anything, because now I may return to my people who are enthusiastically waiting for me."

Hasina, the elder daughter of Bangabandhu Sheikh Mujibur Rahman also expressed her gratitude to the national and international news media, the people of the country, British parliament members, US senators and congressmen, and the members of the European Parliament, among others who, in her words, protested the caretaker government's restrictions on her homecoming.