Shehbaz, 72, who was the consensus candidate of the Pakistan Muslim League-Nawaz (PML-N) and the Pakistan Peoples Party (PPP), received 201 votes, 32 more than what was required to become leader of the House in the 336-member Parliament.
In a breakthrough that could end the political uncertainty in Pakistan, the Pakistan Muslim League-Nawaz and the Pakistan Peoples Party have agreed on a power-sharing deal to form a new coalition government after intense negotiations following a fractured poll verdict.
Shehbaz Sharif, the younger brother of former premier Nawaz Sharif, is expected to become Pakistan's new prime minister as the coalition of leading political parties led by them is set to comfortably cross the simple majority mark to form the next government after elections produced a split mandate.
In a surprise development, Pakistan Muslim League-Nawaz on Tuesday nominated its president Shehbaz Sharif as the prime ministerial candidate of Pakistan instead of the party supremo and three-time former premier Nawaz Sharif.
Bilawal has said the reality is that his party does not have a mandate to form a federal government.
PML-N supremo Nawaz Sharif is still in the race for the prime ministerial slot despite his party not securing a simple majority in the Feb 8 general elections in Pakistan, some PML-N leaders said on Monday.
The Election Commission of Pakistan has announced that independent candidates, a majority of them supported by the PTI secured 101 seats, followed by Pakistan Muslim League-Nawaz (PML-N) with 75 seats, Pakistan Peoples Party (PPP) getting 54 seats, and Muttahida Qaumi Movement-Pakistan (MQM-P) bagging 17 seats.
According to a report in the Dawn newspaper, 22 constituencies with a greater number of rejected votes than the margin of victory fell in Punjab, with one each in Khyber Pakhtunkhwa and Sindh province.
The three main political parties in Pakistan on Sunday intensified their efforts for the formation of a coalition government after it became clear that the coup-prone country faced a hung Parliament after general elections marred by allegations of rigging.
Pakistan's election commission on Sunday declared the final result of Thursday's general elections in which independent candidates backed by jailed former prime minister Imran Khan's party got the biggest piece of the cake by winning 101 seats.
Springing a surprise, independents backed by jailed former prime minister Imran Khan's Pakistan Tehreek-e-Insaf party won the lion's share of 101 seats in the National Assembly in Thursday's election.
The announcement of results was delayed beyond normal, giving air to speculation about vote rigging.
Jailed ex-Pakistan premier Imran Khan's party-backed independent candidates on Friday sprang a surprise by winning 86 seats out of the 201 results declared following unusual delays and allegations of rigging, as the country appeared heading towards a hung assembly.
The PML-N, however, rejected the demand and claimed that it was winning Thursday's elections.
With former prime minister Imran Khan in jail, Sharif's Pakistan Muslim League-Nawaz (PML-N) is tipped to emerge as the single largest party in the elections.
India has also taken note of reports of Saeed's son Talha contesting elections in Pakistan and said the "mainstreaming" of radical terror outfits in the neighbouring country is nothing new and that it has been part of its State policy for a long time.
The development comes amidst officials of the foreign ministries from the two sides exchanged goodwill messages.
Pakistan on Thursday said that the country's air force struck terrorist hideouts in Iran's Siestan-Balochistan province, a day after Islamabad recalled its ambassador from Tehran in the wake of Iranian missile and drone strikes in Balochistan.
Pakistan military Thursday said it used multiple weapons, including killer drones, to carry out effective strikes against hideouts inside Iran used by militants of two leading Baloch terrorist groups responsible for recent attacks in the country.
Iranian missiles and drones on Tuesday night targeted two bases of the Balochi militant group Jaish al Adl in Pakistan's border town of Panjgur in Balochistan province.
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