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The IJI formed governments at the center and all the four provinces and Nawaz sharif became the prime minister of the state. Nawaz Sharif’s cabinet initially included eighteen ministers: nine from Punjab, two from the Islamabad Capital Territory, six from Sindh, and one from Balochistan. His cabinet was later expanded to include representation from the North-West Frontier Province. Of paramount importance to the new government was implementation of Nawaz Sharif’s program for strengthening the economy. Goals of the program included self-reliance, deregulation and denationalization, taxation reform, foreign- exchange and payment reform, administrative and law reform, and increases in agricultural productivity and exports. The government’s economic strategy rested on streamlining the institutional framework for industrialization and on starting a new partnership with the private sector in order to promote common objectives. Nawaz Sharif regarded unemployment as Pakistan’s major problem and believed it could be solved only by rapid industrialization. However, it also decided to dismiss all employees appointed by PPP government in grade 5 and above. He said his government was considering special incentives for rural industrialization and agro-based industries and was fully committed to a policy of deregulation.
Nawaz Sharif, during his first term, founded difficult working with PPP and the Mutahidda Qaumi Movement (MQM), a potent force in Karachi. The MQM and PPP opposed Sharif widely due to his focused on beautifying Punjab and Kashmir while neglecting Sindh. The clash between liberalism and conservatism soon forces soon erupted in 1992 when political tension began to arise in which both party renegading ideological war against each other. Nawaz Sharif’s government members passed the resolution in the Parliament, to launch the paramilitary operation to end the cold war between PML-N and MQM. Paramilitary operation in Sindh Province was Launched in 1992, violence erupted in Karachi and brought an economic halt in the country.
In 1993, Sharif survived serious constitutional crises when it was reported that Sharif developed serious issues over the authority with another national conservative President Ghulam Ishaq Khan. Before 1993 Parliamentary election, President Ghulam Ishaq Khan on 18 April 1993, with the support of the Pakistan Army, used his reserve powers (58-2b) to dissolve the National Assembly, the lower house. Khan appointed Mir Blake Scher as the interim Prime Minister. Nawaz Sharif, moved to Supreme Court of Pakistan. In May 26, 1993, Sharif returned to power after the Supreme Court ruled that the Presidential Order as unconstitutional and reconstituted the National Assembly on its immediate effect.
The power struggle and war between Nawaz sharif and president khan started. Finally, on July 1993, Sharif resigned under pressure from the Pakistan Armed Forces but negotiated a settlement that resulted in the removal of President Ghulam Ishaq Khan as well. In July 1993, Chief of Army Staff General Abdul Vahied Kakar and the Chairman of the Joint Chiefs of Staff Committee General Shamim Allam forced President Ishaq Khan to resign from the presidency and subsequently ended the political standoff. Under the close scrutiny of the Pakistan Armed Forces, the new interim and transitional government was formed and new parliamentary election were held after three months.