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His appointment will be endorsed by newly-elected members of parliament, reports the BBC.
Sharif faces numerous pressing challenges, including reviving a weak economy and bringing an end to militant attacks and US drone strikes.
He becomes prime minister for an unprecedented third time after his election win in May.
The new prime minister’s priorities will be rejuvenating the economy and improving security, both areas that require some speedy but difficult decision-making in a geo-strategic environment which is shaped and controlled by the military, the BBC added.
While the new prime minister favours talks with the Pakistani Taliban, many expect that once he gets into power, he will accept the army’s view that all past negotiations have failed and the only option is to fight the jihadis who attack domestic targets.
He comes to power at a critical time in the battle against the Taliban, as Nato forces begin the process of withdrawing from Afghanistan.
Sharif has continually spoken out against US drone strikes in Pakistan although it is not clear how he can bring these to an end.
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