Bangladesh President Mohammed Shahabuddin dissolved parliament and freed jailed opposition leader Khaleda Zia on Tuesday, a day after Sheikh Hasina resigned as prime minister and fled the country.
The decision to dissolve the national assembly was made after talks involving military chiefs, politicians, civil representatives and student leaders who had led weeks of public demonstrations.
Ms Zia, 78, chairwoman of the Bangladesh Nationalist Party, was the country's first prime minister, serving from 2001 to 2006.
She was Bangladesh's first female prime minister and had served six years of a 17-year jail term after being convicted of corruption in 2018.
She was suffering from poor health and had spent time in hospital.
The President’s office declared that all who were arrested over the student protest movement would be released.
“Khaleda Zia has been freed and many of those held for demonstrating starting [on] July 1 have been freed,” a statement read.

Army chief Gen Waker-Uz-Zaman was scheduled to meet student protest leaders late on Tuesday as Bangladesh awaited the formation of an interim government.
Those who led the demonstrations that led to Ms Hasina's departure have proposed that Nobel laureate Dr Muhammad Yunus be appointed chief adviser of the government.
Ms Hasina, 76, arrived in India on a military aircraft on Monday, after thousands of protesters stormed and looted her residence in Dhaka.
India’s External Affairs Minister Subrahmanyam Jaishankar said she had made the request “at very short notice”.
After receiving a request for flight clearance from the Bangladesh authorities, she arrived in New Delhi on Monday evening, Mr Jaishankar told the Indian Parliament on Tuesday.
Order had returned to the streets of Bangladesh on Tuesday after the army lifted a weeks-long curfew imposed to contain the protests against reserved quotas in government jobs.
Television showed people shopping, while businesses, courts and government offices reopened and public transport services resumed.
Ms Hasina's departure came a day after nearly 100 people were killed in protests on Sunday, taking the death toll during the demonstrations to more than 300.
The demonstrators, mostly students, had been protesting against the introduction of a reservation quota in government jobs that they claimed benefited supporters of Ms Hasina and her ruling Awami League party.
Ms Hasina's son, Sajeeb Wazed Joy, said his mother was disappointed with the events.
“She did not want to leave but we were concerned with her physical safety first and persuaded to leave,” Mr Wazed Joy told India news channel NDTV.
“I spoke to her. [The] situation in Bangladesh is anarchy and she is very disappointed and disheartened. It was her dream to turn Bangladesh into a developed country,” he said.
“We have shown what we can do, how much we can develop, but if the people of Bangladesh are not ready to step up, then people get the leadership they deserve.”

Thousands of protesters stormed the prime ministerial residence in Dhaka on Monday as news emerged that Ms Hasina had left the country.
Gen Uz-Zaman announced the resignation in a televised address and promised to set up an interim government as soon as possible.
While Ms Hasina has been credited with turning the country’s economy around and working to reduce poverty, Bangladesh's economy has been struggling since the coronavirus pandemic.
Her government banned public rallies, issued “shoot-on-sight” orders and imposed a near-total internet and mobile blackout after the protests began early last month.
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If you go
The flights
Etihad (etihad.com) flies from Abu Dhabi to Luang Prabang via Bangkok, with a return flight from Chiang Rai via Bangkok for about Dh3,000, including taxes. Emirates and Thai Airways cover the same route, also via Bangkok in both directions, from about Dh2,700.
The cruise
The Gypsy by Mekong Kingdoms has two cruising options: a three-night, four-day trip upstream cruise or a two-night, three-day downstream journey, from US$5,940 (Dh21,814), including meals, selected drinks, excursions and transfers.
The hotels
Accommodation is available in Luang Prabang at the Avani, from $290 (Dh1,065) per night, and at Anantara Golden Triangle Elephant Camp and Resort from $1,080 (Dh3,967) per night, including meals, an activity and transfers.
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How The Debt Panel's advice helped readers in 2019
December 11: 'My husband died, so what happens to the Dh240,000 he owes in the UAE?'
JL, a housewife from India, wrote to us about her husband, who died earlier this month. He left behind an outstanding loan of Dh240,000 and she was hoping to pay it off with an insurance policy he had taken out. She also wanted to recover some of her husband’s end-of-service liabilities to help support her and her son.
“I have no words to thank you for helping me out,” she wrote to The Debt Panel after receiving the panellists' comments. “The advice has given me an idea of the present status of the loan and how to take it up further. I will draft a letter and send it to the email ID on the bank’s website along with the death certificate. I hope and pray to find a way out of this.”
November 26: ‘I owe Dh100,000 because my employer has not paid me for a year’
SL, a financial services employee from India, left the UAE in June after quitting his job because his employer had not paid him since November 2018. He owes Dh103,800 on four debts and was told by the panellists he may be able to use the insolvency law to solve his issue.
SL thanked the panellists for their efforts. "Indeed, I have some clarity on the consequence of the case and the next steps to take regarding my situation," he says. "Hopefully, I will be able to provide a positive testimony soon."
October 15: 'I lost my job and left the UAE owing Dh71,000. Can I return?'
MS, an energy sector employee from South Africa, left the UAE in August after losing his Dh12,000 job. He was struggling to meet the repayments while securing a new position in the UAE and feared he would be detained if he returned. He has now secured a new job and will return to the Emirates this month.
“The insolvency law is indeed a relief to hear,” he says. "I will not apply for insolvency at this stage. I have been able to pay something towards my loan and credit card. As it stands, I only have a one-month deficit, which I will be able to recover by the end of December."
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Analysis
Maros Sefcovic is juggling multiple international trade agreement files, but his message was clear when he spoke to The National on Wednesday.
The EU-UAE bilateral trade deal will be finalised soon, he said. It is in everyone’s interests to do so. Both sides want to move quickly and are in alignment. He said the UAE is a very important partner for the EU. It’s full speed ahead - and with some lofty ambitions - on the road to a free trade agreement.
We also talked about US-EU tariffs. He answered that both sides need to talk more and more often, but he is prepared to defend Europe's position and said diplomacy should be a guiding principle through the current moment.
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How being social media savvy can improve your well being
Next time when procastinating online remember that you can save thousands on paying for a personal trainer and a gym membership simply by watching YouTube videos and keeping up with the latest health tips and trends.
As social media apps are becoming more and more consumed by health experts and nutritionists who are using it to awareness and encourage patients to engage in physical activity.
Elizabeth Watson, a personal trainer from Stay Fit gym in Abu Dhabi suggests that “individuals can use social media as a means of keeping fit, there are a lot of great exercises you can do and train from experts at home just by watching videos on YouTube”.
Norlyn Torrena, a clinical nutritionist from Burjeel Hospital advises her clients to be more technologically active “most of my clients are so engaged with their phones that I advise them to download applications that offer health related services”.
Torrena said that “most people believe that dieting and keeping fit is boring”.
However, by using social media apps keeping fit means that people are “modern and are kept up to date with the latest heath tips and trends”.
“It can be a guide to a healthy lifestyle and exercise if used in the correct way, so I really encourage my clients to download health applications” said Mrs Torrena.
People can also connect with each other and exchange “tips and notes, it’s extremely healthy and fun”.
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Saturday (UAE kick-off times)
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