Information Minister Nisar Memon said yesterday that Mr Musharraf had signed the order lifting the emergency, calling it a 'historic day'.

'The caretaker government is under oath to hold free, fair, transparent and impartial elections to put the country back on track,' Mr Memon added.

Pakistan is set to go to the polls on Jan 8.

Mr Musharraf's order required judges to take the oath of office again. He swore in the Supreme Court's chief justice, then sat solemnly as the justice administered the oath to the rest of the court.

On Friday, Mr Musharraf tweaked the Constitution to remove a condition stating that civil servants had to wait two years after their retirement before running for elected office.

Mr Musharraf had stepped down as army chief only last month.

Opposition leader and former prime minister Benazir Bhutto said she considered the lifting of the state of emergency 'an important step forward'.

'But more needs to be done for the restoration of democracy.' she said.

Mr Musharraf said he imposed the state of emergency to halt a 'conspiracy' by top judges to end his eight-year rule and to ward off political chaos that would hobble Pakistan's efforts against Islamic extremism.

Reuters, AP