Callbeck resigned as Premier of PEI and leader of the Liberal Party after more than three and a half years in office.
On October 25, 1996, Catherine Callbeck announced her resignation as Premier of Prince Edward Island and as leader of the Liberal Party of Prince Edward Island, concluding a term of more than three and a half years since her historic swearing-in in January 1993.
Her tenure as Premier had been marked by efforts toward fiscal restraint and government reorganization during a period of economic pressure across Atlantic Canada, as well as continued advocacy for rural development in the small province. Her resignation came amid a period of political transition, and she stepped back from the top office having secured her place in history as Canada's first elected female provincial premier.
Following her departure from provincial leadership, Callbeck did not retreat from public life. Her record as Premier and her earlier career as an MLA, cabinet minister, and federal Member of Parliament had established her as one of the most accomplished women in Canadian politics. Her resignation set the stage for her later appointment to the Senate of Canada in 1997, where she would continue to serve Prince Edward Island at the federal level for nearly two more decades.