Members of the minority community have refused to bury those killed on Thursday in Pakistan's worst sectarian bombings when suicide attackers killed 92 people at a crowded snooker hall in the provincial capital Quetta.
More than 120 were wounded in the attacks claimed by Sunni Muslim militant group Lashkar-e-Jhangvi in an area dominated by Shi'ites from the Hazara ethnic minority.
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Shi'ite leaders said protesters would not call off their sit-in and bury their dead until they see official notification about steps announced by Ashraf after day break. Local TV stations showed footage of them still protesting.
The families have refused to bury loved ones until the authorities agree to put the security and administration of the city under army control.
The prime minister flew to Quetta on Sunday to listen to their grievances and announced live on television that he had accepted all their demands, including the sacking of the provincial government and the suspension of its legislature.
"We have decided to impose governor's rule in Baluchistan for two months, the provincial government will be sacked," Ashraf said after offering his condolences to grieved families.
"It is a national tragedy and the entire nation is saddened over it."
The governor can call on the army to help control the law and order situation whenever needed, the prime minister said.
He also directed the authorities to arrest the culprits behind attacks against the Shi'ite community and urged the families to bury their dead.
Refusing to bury the dead is an extreme protest in Islamic society, where the deceased are normally buried the same day or the next day.
The provincial government has been widely critcised in Baluchistan for being unable to control not just sectarian violence, but other attacks linked to a nearly nine-year separatist insurgency and to Islamist militants.
The sacked chief minister, Aslam Raisani, was critcised for making a trip to London while security deteriorated.
Shi'ites, who account for around 20 percent of Pakistan's 180 million people, last year suffered record levels of violence according to Human Rights Watch.
