Former Pakistan prime minister Nawaz Sharif was allowed on Thursday by the Supreme Court to return to Pakistan after seven years in exile in Saudi Arabia, in yet another setback for embattled President Pervez Musharraf [Images].

The unanimous verdict paving the way for the return of Sharif to participate in the upcoming Parliamentary elections
was given by a seven-member bench of the Supreme Court headed by Chief Justice Iftikhar Muhammad Choudhry in a jam-packed court room.

Sharif, his brother and his family members were sent in exile to Saudia Arabia one year after he was ousted by the Army Chief General Pervez Musharraf in a military coup in October 1999.

"The Sharifs can return to Pakistan unhindered," Justice Chaudhry said in his judgment. "They had an inalienable right to return and remain in the country as citizens of Pakistan."

"Their safe return will not be restricted or hampered by the federal governments or provincial governments or any other
agencies in any manner," Chaudhry added.

Sharif's supporters danced jubilantly outside the court in Islamabad after the verdict was announced, chanting "Go Musharraf, go!" "Musharraf is a dog!" and "Long live Nawaz Sharif".

The court gave the order after the former premier had filed a petition in the apex court seeking permission for his return to the country and to take part in the general elections.

Sharif was arrested and sentenced to life imprisonment on charges of hijacking, tax evasion and treason after Musharraf
took power. He was also convicted of corruption and banned for life from political activities.

Sharif's plans to return and contest elections are seen as a challenge to President Musharraf, who is facing growing
political pressures. Benazir Bhutto [Images], another banished former premier, is also vowing to return and lead a growing campaign to restore democracy amid reports that she is negotiating a power-sharing deal with Musharraf.

Sharif ramped up his campaign to return to Pakistan to contest elections with his lawyers arguing in court that Musharraf had illegally sent him into exile.

His lawyer Fakhruddin Ibrahim  said  his client had an "undeniable, unqualified, fundamental right to remain in Pakistan and contest the forthcoming elections."

"You have no right to send someone abroad, to send someone into exile," Ibrahim told government lawyers in the first hearing on a petition filed by Sharif and his brother.

Musharraf has said he let Sharif out of jail and allowed him to leave Pakistan under an arrangement whereby he would not return for at least 10 years.

On Wednesday, government lawyers gave the court a copy of what it said was the agreement signed by Sharif.  However, the document neither mentions Pakistan's government nor carries the signature of any Pakistani
official  -- a point seized on by Sharif and his lawyers to contest its validity. "It has to be ignored," Ibrahim said.

Two of the seven judges hearing Sharif's petition asked government lawyers not to describe the exile deal as a "agreement".

Government lawyers say they cannot prevent Sharif from returning but warn that he could face unspecified legal action
when he reaches Pakistani soil.

Musharraf, who moved against Sharif after he tried to replace him as army chief, has vowed to prevent the exiled
former premiers from returning.