Sharif, who was on a day-long visit to Karachi, said the army has been told to provide all technical support to the police and paramilitary rangers to improve the deteriorating situation in Karachi, sources said.
He reprimanded top government officials for the situation during a high-level meeting that was attended by Federal Interior Minister Nisar Ali Khan.
"The Prime Minister was clear that with large scale operation against foreign and local terrorists in the North Waziristan there was a need to be very alert by all security and law enforcement agencies as Karachi could face the brunt of any repercussions," an official source told PTI.
But litle success has been achieved in the city which is home to some 20 million people. The targeted killings, street crimes, kidnappings, and extortions have continued unabated while sectarian violence and killings have shaken the city.
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Sharif too pointed out that there appeared to be no visible improvement in the law and order or security situation in Karachi and referred to the recent terrorist attack on the old Karachi airport and the target killings of policemen, the source added.
Meanwhile, the influential business and traders community of Karachi have asked the prime minister to hand over the city's security to Pakistani military to improve the worsening law and order situation.
"The businessmen told the Prime Minister that they had no faith in the performance of the Sindh government which is run by the Pakistan Peoples Party as despite several promises the law and order situation had not improved at all and it was not safe or secure to carry out normal business in Karachi," a leading trader who attended the meeting told PTI.
Sharif, later, announced a Rs 15 billion grant for the development of a fast and efficient metro bus system, named Green Line, for Karachi.
The prime minister told the media that his government was keen to revolutionise Karachi's transport system.
While Nawaz Sharif's Pakistan Muslim League runs the government at the Centre, the main opposition party Pakistan People's Party is in power in Sindh, often leading to friction between the two parties.