After the death of Zaghlul Pasha, Mustafa-al-Nahas was elected the leader of the party and became the Prime Minister in 1928. The main problem which confronted him were the settlement of the constitutional dispute and the Anglo-Egyptian relations. He introduced an amendment to the Public Assembly Act which sought to deprive the police of its power to break up public gathering at their discretion.

The British Government objected to this piece of legislation and sent a note to King Fuad. The Egyptian Cabinet took this note as an unwarranted interference in the Egyptian affairs. It also categorically rejected the right of the British Government to interference in the affairs of Egypt. However, with a view to keep room open for settlement through friendly negotiations with the English, it postponed consideration on the bill until the next session of the Parliament.

King Fuad. who was jealous of the popularity of the Wafad Party contrived to bring about the fall of the ministry and the constitutional rule was suspended. Thereafter King Fuad exercised his constitutional authority liberally in making and unmaking the ministries. This uncertainty and chaos continued till the death of King Fuad in 1936.