Violence rocked Bahrain from 1994

Diplomats say the pardon is linked to constitutional reforms in Bharain, where a referendum is due to be held this week.

Outrage

The Bangladesh Legal Aid Services Trust said the decision to free the eight was an outrage for the families of the dead.

Three of those convicted of the arson attack were sentenced to death, four were imprisoned for life and one was sent to jail for 15 years.

The Emir of Bahrain, Sheikh Hamad bin Issa al-Khalifa, has pardoned hundreds of prisoners and allowed dissidents in exile to return to the country.

He is trying to form a power-sharing arrangement between the Sunni ruling class of the island and the majority Shi'ite population.

The referendum on Wednesday and Thursday includes the restoration of a partly-elected parliament.

Looking for support

Sheikh Hamad al-Kalifa has toured the country including Sitra, the hometown of the eight pardoned men, to draw support for his reforms.

Organisations representing migrant workers have criticised the amnesty, accusing the government of mistreating foreign labourers.

Amnesty International, however, has welcomed the move.

Amnesty said last week the authorities had now released 289 political prisoners and detainees held in connection with the civil unrest that erupted in the mid-1990s.

It said: "We hope this will be followed by more positive steps, such as the amendment of the country's legislation to bring it into harmony with international human rights standards."