Nawaz Sharif’s Second Term (1997–1999): Atomic Power, Reforms & Political Crisis in Pakistan

Prime Minister Nawaz Sharif’s Second Term (1997–1999): Constitutional Power, Nuclear Tests & Political Clashes

For political background, read the article on Nawaz Sharif’s First Term (1990–1993).

Introduction

In the 1997 general elections, Pakistan Muslim League-Nawaz (PML-N), under the leadership of Nawaz Sharif, secured a historic victory. This marked Nawaz Sharif’s second tenure as Prime Minister—his first under the official banner of PML-N, having previously led under the IJI (Islami Jamhoori Ittehad) alliance. These elections saw not only the continued rivalry between PML-N and PPP but also the entry of a third force: Imran Khan’s Pakistan Tehreek-e-Insaf (PTI), making its electoral debut.

1997 General Elections: A Landmark Win

PML-N won approximately 66% of the popular vote, securing 137 out of 207 National Assembly seats, granting them a rare two-thirds majority. This gave Nawaz Sharif unprecedented legislative power, enabling constitutional amendments without needing coalition partners. PPP faced a significant decline in its voter base, largely due to disillusionment after Benazir Bhutto’s government was dismissed amid corruption allegations.

Entry of Imran Khan & Sita White Controversy

Imran Khan’s entry into politics with PTI in 1996 was notable. Though welcomed by Nawaz Sharif initially, Khan refused to align with any established party. During the 1997 campaign, he positioned himself as an anti-corruption crusader. However, his personal life came under scrutiny when British citizen Sita White filed a paternity suit in a U.S. court, alleging that Khan was the father of her daughter, Tyrian White. The court ruled in her favor in Khan's absence, sparking a public debate about Article 62/63 of the Constitution concerning the character of parliamentarians. Though no action was taken due to the trial being outside Pakistani jurisdiction, the case significantly affected PTI's perception in the public eye. Imran Khan failed to win a single seat, including from his stronghold, Mianwali.

Constitutional Amendments under Nawaz Sharif

  • 13th Amendment: Removed the President’s power to dismiss the National Assembly under Article 58(2)(b).
  • 14th Amendment: Introduced anti-floor crossing provisions, barring members from voting against party lines.
  • 15th Amendment (Shariah Bill): Proposed to enforce Islamic laws as supreme law of Pakistan but failed to pass the Senate.
  • 16th Amendment: Extended the quota system in federal employment and education for 20 more years.

Clashes with Judiciary and the Presidency

Nawaz Sharif’s second tenure began with confrontations with President Farooq Leghari and Chief Justice Sajjad Ali Shah. Tensions culminated in the infamous 1997 attack on the Supreme Court, allegedly involving PML-N supporters. This incident led to Sajjad Ali Shah’s removal and deepened the civil-military-judicial crisis. Eventually, both Farooq Leghari and Sajjad Ali Shah were forced out of office.

Economic & Infrastructure Reforms

  • Qarz Utaro Mulk Sanwaro Scheme: A national campaign to reduce Pakistan’s debt by encouraging public donations. It collected billions in rupees, showcasing public trust in Nawaz Sharif’s government.
  • Lahore-Islamabad Motorway: South Asia’s largest motorway was completed, a project that began during Nawaz's first tenure and was inaugurated in this term.

Education Reforms

The government introduced evening classes in public institutions and made Quranic and Islamic Studies compulsory in several streams, including BA and BSc. Policies were directed toward improving enrollment and teacher recruitment, and emphasizing moral education.

1998 Census & Demographics

Pakistan conducted a national census after 17 years, recording a population of approximately 132 million. The data played a key role in planning education, employment, and provincial resource allocations.

Pakistan’s Nuclear Tests: Response to India

India conducted five nuclear tests in May 1998, prompting calls for a Pakistani response. Despite immense international pressure, including direct warnings and economic sanctions from the United States, UK, and others, Nawaz Sharif authorized Pakistan’s nuclear tests on 28 May 1998 at the Chagai hills. Six nuclear devices were detonated, and Pakistan emerged as the world’s 7th nuclear power—and the first in the Islamic world.

International Sanctions & Aftermath

Post-tests, Pakistan faced severe U.S.-led sanctions, freezing foreign aid, loans, and trade agreements. Countries like Japan, Canada, and the EU also imposed restrictions. The economy struggled, leading to wheat shortages. In response, Nawaz Sharif negotiated emergency aid during a U.S. visit and received support from Saudi Arabia, which provided deferred oil payments and cash assistance.

Lahore Declaration (1999)

In February 1999, Indian PM Atal Bihari Vajpayee visited Pakistan, signing the Lahore Declaration. Both countries agreed to resolve disputes, including Kashmir, through peaceful dialogue. This marked a brief thaw in India-Pakistan relations.

Kargil War (May–July 1999)

Just months after the Lahore Declaration, Pakistani troops and militants occupied strategic posts in Kargil, across the Line of Control (LoC). India retaliated fiercely, reclaiming lost territory. The military operation—allegedly initiated by General Pervez Musharraf without Nawaz Sharif’s full consent—resulted in heavy casualties. Lacking international support and facing diplomatic isolation, Nawaz Sharif traveled to the U.S. to meet President Clinton, seeking an end to hostilities. Pakistan withdrew, but the incident damaged Nawaz’s credibility and civil-military trust.

Fall of the Government

Nawaz Sharif dismissed General Jehangir Karamat and later appointed General Pervez Musharraf as Army Chief, bypassing senior generals. This move backfired. On 12 October 1999, after Nawaz Sharif attempted to dismiss Musharraf during his overseas flight, the military seized power. Sharif’s government was dissolved, and Musharraf declared martial law—marking the end of the democratic era and beginning of military rule once again.

Conclusion

Nawaz Sharif’s second term was marked by constitutional boldness, infrastructure development, nuclear empowerment, and confrontations with institutions. His vision of economic modernization and independent policymaking was overshadowed by political miscalculations, judicial battles, and the Kargil fallout. This period remains one of the most dramatic and pivotal eras in Pakistan’s political history.

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