In 1991, Bangladesh's parliamentary elections saw the Bangladesh Nationalist Party (BNP), led by Khaleda Zia, the widow of Ziaur Rahman, winning a plurality. The BNP formed a government with support from Jamaat-I-Islami. The Parliament also included the Awami League (AL) led by Sheikh Hasina, the Jamaat-I-Islami (JI), and the Jatiya Party (JP).

Khaleda Zia's first term as Prime Minister of Bangladesh, from 1991 to 1996, was a significant period in the country's political history, marking the restoration of parliamentary democracy after years of military rule and autocratic governance. Her leadership was instrumental in transitioning Bangladesh towards a democratic system, with her government overseeing the conduct of free and fair elections, a foundational step in re-establishing democratic norms in the country.

Economically, Zia's administration prioritized liberalization, aiming to boost the private sector and attract foreign investment, which contributed to steady economic growth. Her tenure was also noted for substantial investments in infrastructure, including the development of roads, bridges, and power plants, efforts that sought to improve Bangladesh's economic foundations and enhance connectivity. Additionally, her government took steps to address social issues, with initiatives aimed at improving health and education indicators.

Controversy erupted in March 1994 over allegations of election rigging by the BNP, leading to an opposition boycott of Parliament and a series of general strikes demanding the resignation of Khaleda Zia's government. Despite mediation efforts, the opposition resigned from Parliament in late December 1994 and continued their protests.

The political crisis led to boycotted elections in February 1996, with Khaleda Zia re-elected amid claims of unfairness. In response to the turmoil, a constitutional amendment in March 1996 enabled a neutral caretaker government to oversee new elections. The June 1996 elections resulted in a victory for the Awami League, with Sheikh Hasina becoming Prime Minister, forming a government with the Jatiya Party's support.