Aziz successfully oversaw the rapid development of the local government system in Pakistan as part of his "Strengthening Decentralisation" program.
His domestic initiatives including the decentralisation in the country, and termed the local government system as "more transparent and accountable".
Aziz strengthened the policy formats and area of responsibility of National Reconstruction Bureau (NRB) after appointing Daniyal Aziz in 2005.
Aziz carried out major reforms in Law enforcement agencies, Police forces, and court system in the country.
In 2005, Aziz's government installed 6,000 water supply and sanitation filter plants in entire, through the Khushal Pakistan (lit.
Prospered Pakistan) programme, a scheme founded by Nawaz Sharif in the 1990s.

As Prime Minister, Aziz took hard stance against rivals and took a hardline against his political challengers.
Aziz thrashed the Alliance for Restoration of Democracy (ARD) led by conservative leader Javed Hashmi who was placed in military prison on treason charges, on a support provided by Aziz.
His hardline and tough counter active measures forced Pakistan Peoples Party of Benazir Bhutto and Pakistan Muslim League-N of Nawaz Sharif to concede their defeat and took asylum in United Kingdom.

In 2005, a non-partisan local government elections were decided to be held in entire country, starting first to hold the elections in Karachi, Sindh Province.
Subsequently, Aziz supervised and presided the first free and fair local body elections with PML(Q) and its allied parties sweeping the election arena.
Controversially, Aziz allocated Rs.
20 million to each district where PML(Q) candidates lost the National Assembly elections in order to secure its voting bank that was lost in 2002.
In Sindh and Balochistan Province, Aziz presided the peaceful election held events and personally monitored the success of the local government body programme.
Under his first few of years of government, the law and order situation remains under control and prosperity in Balochistan, and presided the completion the first phase of the Gwadar port.

Problems began to mount with nationalist Akbar Bugti, an ally of Nawaz Sharif.
Although, Aziz repeatedly and forcefully denied the knowledge of any military action against Bugti and, as Prime minister, Aziz never released any information of any military action in Balochistan.
However, Aziz appeared on television screens and stated that "Akbar Bugti died in a military operation during the night of August 25—26, 2008".
Aziz was inflicted with the involvement in the killing of Akbar Khan Bugti, although he has denied any involvement in any manner.

In Islamabad alone, Aziz's government was forced to take military action, codename Silence after chairing a meeting with the President.
In 2009, Aziz maintained that his government had tried at every level of extreme to resolve the Lal Masjid issue through talks to save lives.
In a television interview, Aziz maintained that "We gave them time to leave the mosque and the Imam-e-Kaaba Abdul Rahman Al-Sudais also came to Pakistan on my request in connection with the issue.".

One of the widely reported controversy took place in his government was the atomic proliferation scandal of Abdul Qadeer Khan.
Aziz remains supportive towards Khan and efficiently took matters of Abdul Qadeer Khan in 2006 from President Musharraf.
On 10 September 2006, Aziz sent flowers and personally visited Khan when he was hospitalised and on 12 October 2007, Musharraf made it clear to United States and rest of the world that Khan "won't be handed over" at given any circumstances.
On a television speech, Aziz paid a huge tribute to Abdul Qadeer Khan and while commenting on last part of his speech, Aziz stressed it:
The (meritorious) services of scientist Dr. Abdul Qadeer Khan are "unforgettable" for our beloved country, "Pakistan"....
— Prime Minister Shaukat Aziz Shukat Aziz publicly supporting Abdul Qadeer Khan in 2007, source
Aziz successfully oversaw the rapid development of the local government system in Pakistan as part of his "Strengthening Decentralisation" program. His domestic initiatives including the decentralisation in the country, and termed the local government system as "more transparent and accountable". Aziz strengthened the policy formats and area of responsibility of National Reconstruction Bureau (NRB) after appointing Daniyal Aziz in 2005. Aziz carried out major reforms in Law enforcement agencies, Police forces, and court system in the country. In 2005, Aziz's government installed 6,000 water supply and sanitation filter plants in entire, through the Khushal Pakistan (lit. Prospered Pakistan) programme, a scheme founded by Nawaz Sharif in the 1990s.
As Prime Minister, Aziz took hard stance against rivals and took a hardline against his political challengers. Aziz thrashed the Alliance for Restoration of Democracy (ARD) led by conservative leader Javed Hashmi who was placed in military prison on treason charges, on a support provided by Aziz. His hardline and tough counter active measures forced Pakistan Peoples Party of Benazir Bhutto and Pakistan Muslim League-N of Nawaz Sharif to concede their defeat and took asylum in United Kingdom.
In 2005, a non-partisan local government elections were decided to be held in entire country, starting first to hold the elections in Karachi, Sindh Province. Subsequently, Aziz supervised and presided the first free and fair local body elections with PML(Q) and its allied parties sweeping the election arena. Controversially, Aziz allocated Rs. 20 million to each district where PML(Q) candidates lost the National Assembly elections in order to secure its voting bank that was lost in 2002. In Sindh and Balochistan Province, Aziz presided the peaceful election held events and personally monitored the success of the local government body programme. Under his first few of years of government, the law and order situation remains under control and prosperity in Balochistan, and presided the completion the first phase of the Gwadar port.
Problems began to mount with nationalist Akbar Bugti, an ally of Nawaz Sharif. Although, Aziz repeatedly and forcefully denied the knowledge of any military action against Bugti and, as Prime minister, Aziz never released any information of any military action in Balochistan. However, Aziz appeared on television screens and stated that "Akbar Bugti died in a military operation during the night of August 25—26, 2008". Aziz was inflicted with the involvement in the killing of Akbar Khan Bugti, although he has denied any involvement in any manner.
In Islamabad alone, Aziz's government was forced to take military action, codename Silence after chairing a meeting with the President. In 2009, Aziz maintained that his government had tried at every level of extreme to resolve the Lal Masjid issue through talks to save lives. In a television interview, Aziz maintained that "We gave them time to leave the mosque and the Imam-e-Kaaba Abdul Rahman Al-Sudais also came to Pakistan on my request in connection with the issue.".
One of the widely reported controversy took place in his government was the atomic proliferation scandal of Abdul Qadeer Khan. Aziz remains supportive towards Khan and efficiently took matters of Abdul Qadeer Khan in 2006 from President Musharraf. On 10 September 2006, Aziz sent flowers and personally visited Khan when he was hospitalised and on 12 October 2007, Musharraf made it clear to United States and rest of the world that Khan "won't be handed over" at given any circumstances. On a television speech, Aziz paid a huge tribute to Abdul Qadeer Khan and while commenting on last part of his speech, Aziz stressed it:
The (meritorious) services of scientist Dr. Abdul Qadeer Khan are "unforgettable" for our beloved country, "Pakistan"....
— Prime Minister Shaukat Aziz Shukat Aziz publicly supporting Abdul Qadeer Khan in 2007, source
Shaukat Aziz