up High Court benches in major cities outside of Dhaka was also passed. While Islam remains the state religion, the provision for decentralising the High Court division has been struck down by the Supreme Court. By 1989, the domestic political situation in the country seemed to have quieted. The local council elections were generally considered by international observers to have been less violent and more free and fair than previous elections. However, opposition to Ershad's rule began to regain momentum, escalating by the end of 1990 in frequent general strikes, increased campus protests, public rallies, and a general disintegration of law and order. Return of parliamentary republic and Battle of the Begums First caretaker government (1990–1991) Ershad resigned under the pressure from the military and international community, as the pro-democracy movement spearheaded by Khaleda Zia and Sheikh Hasina engulfed the entire country and drew the participation of the middle and upper classes. The chief justice, Shahabuddin Ahmed, was sworn in as acting president and formed the first caretaker government of Bangladesh. Ahmed placed Ershad under arrest and organised free and fair elections in 1991. Khaleda administration (1991–1996) The centre-right BNP won the 1991 Bangladeshi general election with 140 seats, but was short of an overall parliamentary majority. However, they formed a government with support from the Islamic party Jamaat-e-Islami, with Khaleda Zia, widow of Ziaur Rahman, obtaining the post of prime minister. Only four parties had more than 10 members elected to the 1991 Parliament: The BNP, led by Prime Minister Begum Khaleda Zia; the AL, led by Sheikh Hasina; the Jamaat-I-Islami (JI), led by Ghulam Azam; and the Jatiya Party (JP), led by acting chairman Mizanur Rahman Choudhury while its founder, former President Ershad, served out a prison sentence on corruption charges. Khaleda Zia became the first female prime minister in Bangladeshi history. In September 1991 a constitutional referendum was held, which sought the transfer of executive powers from the President, which had been held by the Office since 1975, to the Prime Minister – making the President largely a ceremonial role. The vote was overwhelmingly in favour of the constitutional amendment and Bangladesh was restored to a Parliamentary democracy, as per its founding constitution. In October 1991, members of Parliament elected a new head of state, President Abdur Rahman Biswas.Finance Minister Saifur Rahman launched a series of liberal economic reforms, which set a precedent in South Asia and