As scheduled, elections were held in February 1997. Pakistan Muslim League won with an overwhelming majority with no strong opposition. The Muslim League was able to obtain a two - third majority in the National Assembly and Mian Nawaz Sharif was re-elected as Prime Minister. He obtained a vote of confidence from the National Assembly on February 18, 1997.

A number of very important constitutional changes were introduced during Nawaz Sharif’s second term, which include the end of the Eighth Amendment, passing of the Thirteenth Amendment and the Ehtesab Act, 1997. Nawaz Sharif also faced a confrontation with the judiciary and the executive, which eventually brought about the resignation of President Leghari on December 2, 1997.

It was during the second term of Nawaz Sharif that Pakistan carried out its nuclear tests on May 28, 1998 in response to Indian detonation of its three nuclear devices. It had become imperative for Pakistan to carry out these nuclear tests in order to provide an effective defense and to deter Indian adventurism.

The Nawaz government proclaimed an emergency on May 28, 1998, on the day the nuclear tests were conducted . All fundamental rights were suspended and all the foreign currency accounts with banks in Pakistan were frozen. In August 1998, Nawaz regime introduced the Fifteenth Amendment on August 28, 1998. The bill generated heated debate throughout the country but was passed on October 9, 1998 by the members of the National Assembly. The bill however was not put before the Senate within 90 days as was required by the constitution .The bill was held back, as Nawaz Sharif did not have the required two third majority in the Senate.