He took oath as the twenty-fourth CM of the province last evening at a ceremony held at the Governor House.
Shah replaced the long serving octogenarian Syed Qaim Ali Shah in the key position in the PPP governed province.
Qaim Ali Shah was asked to step down by the top leadership of the party during meetings held in Dubai last weekend.
Earlier in the day, Murad, son of former chief minister of the province Abdullah Shah, was elected in the session of the Sindh Assembly.
In a widely expected move earlier, the PPP had formally nominated senior minister Syed Murad Ali Shah as chief minister after Qaim Ali Shah handed in his resignation earlier this week.
Murad Ali Shah is a seasoned politician having been elected to the provincial assembly from the Jamshoro constituency PS-73 since its creation in the 2002 general elections. He was elected to the seat from 2002-2007, and was elected again on the same seat during by-polls in 2014.
Shah was disqualified from the 2013 general election as he held Canadian citizenship at the time. He later renounced his Canadian citizenship so he could contest by-polls in 2014.
Sources said that the declining law-and-order situation in the province and the growing influence of the Rangers were among the reasons for the central PPP leadership to remove Qaim Ali Shah.
Karachi, a metropolis of around 20 million people, remains the economic and financial hub of the country but its worsening law-and-order situation had increased the pressure on the PPP high command to change the leadership.
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