In the 1990 general elections, the right-wing conservative alliance, the Islamic Democratic Alliance (IDA) led by Nawaz Sharif, gained enough support to form a government. This marked the first time a right-wing conservative alliance assumed power under a democratic system in Pakistan. Sharif's administration focused on addressing the country's stagflation by implementing policies of privatization and economic liberalization. Additionally, his government maintained a policy of ambiguity regarding Pakistan's atomic bomb programs.

During his tenure, Sharif involved Pakistan in the Gulf War in 1991 and initiated a military operation against liberal forces in Karachi in 1992. However, his government faced institutional challenges, particularly with President Ghulam Khan. Khan attempted to dismiss Sharif using similar charges that he had previously leveled against Benazir Bhutto. Sharif was initially ousted but was restored to power following a Supreme Court judgment. In a political maneuver, Sharif and Bhutto collaborated to remove President Khan from office. Despite this, Sharif's term was short-lived, as he was eventually compelled to step down due to pressure from the military leadership.