Sharif and the PML-N leadership have decided that Shahbaz should continue in his role as chief minister of the politically vital Punjab province.
Pakistan has extended by two months the house arrest of Hafiz Saeed, accused by the US of masterminding 2008 attacks on Mumbai that killed 166 people.
Tehreek-e-Taliban has claimed responsibility for the attack.
A large crowd of had people gathered, many to collect fuel in containers from the overturned oil tanker, when it exploded in a huge fireball.
The man was prosecuted by the counter terrorism court for playing ‘blasphemous’ material on his phone at a bus stop.
Accused by the US and India for sponsoring the Mumbai attacks through LeT, Saeed was placed under house arrest after years of living free in Pakistan.
In the second such killing over blasphemy in a week police say that one of the women acted as an instigator, persuading the other two to carry out the act.
Muhammad Khurassani, a spokesman for Tehrik-i-Taliban Pakistan, a banned Islamist movement often called the Pakistani Taliban, issued a statement claiming responsibility.
The South Asian country has been struck by a wave of terrorist attacks in recent weeks, killing at least 130 people across the country and leaving hundreds wounded.
It was unclear whether the new crackdown would target groups like the Jaish-e-Mohammad and Lashkar-e-Taiba, which are aligned against rival India.
Jamaat-ur-Ahrar, a faction of the Pakistani Taliban, has claimed responsibility for the attack.
Pakistani police allege that honour killing victim, Qandeen Baloch’s parents were bribed to change their testimony after they claimed only one son was involved.
In this rare stand by Pakistani authorities, the murder of Baloch, a social media celebrity, will evade a common legal escape that prevents honour killing cases from going to trial.
While Pakistan’s attention has been focused on the Taliban and al-Qaeda threat in the remote northwest, militants and criminals have quietly expanded their influence in the country’s heartland of Punjab.