On October 24 and 27, 1990, respectively, elections were held for the National and Provincial assemblies. Mian Muhammad Nawaz Sharif, the ex-Chief Minister of Punjab was elected the Prime Minister on November 1, 1990.

During his tenure as the Prime Minister, Nawaz Sharif made efforts to strengthen the industrial sector with the help of private sector. Projects like Ghazi Brodha, Gawadar Mini port, were initiated. Land was distributed among landless haris in Sind. A massive uplift of Murree and Kahuta was done during his term as Chief Minister Punjab. Relations with the Central Asian Muslim republics were strengthened and ECO was given a boast.

To end the Afghan crisis, "Islamabad Accord" was reached between various Afghan factions. His most important contribution was economic progress despite American sanctions on Pakistan through Pressler amendment.