Col Khan Muhammad Khan first entered politics with his election to the seat of Tehsil Bagh and Sudhnati in the first elections of the Jammu & Kashmir Legislative Assembly, held in 1934. His political rival, Ch. Khan Bahadar Khan Bhango, received less than 1000 votes and consequently lost his security deposit.
He was returned to the Tehsil Bagh and Sudhnoti seat in subsequent Legislative Assembly elections until 1946, when he stepped aside voluntarily in favour of Sardar Muhammad Ibrahim Khan, who later became the first president of Azad Kashmir.
In 1947 he became Chairman of the War Council during War of Independence, and later became a Member of the Defence Council. He also organised 60,000 ex-servicemen from the Sudhan tribe to fight against Dogra rule in Poonch.
He dedicated his life and the resources he had, to improving the lives of the Muslims of "Poonch" particularly and the Muslims of Kashmir generally. His main political concern was the plight of Muslims under the oppressive double tier rule of "Raja Poonch" and "Maharaja of Kashmir". He worked against various social evils prevailing amongst his people at that time. He motivated his people to give up the superfluous and frivolous social practices like Dowry, lavish spending on birth, death and marriage rituals, naswar and cigarettes, he emphasized the importance of education for all. It is basically thanks to his efforts that Azad Kashmir today has a comparatively higher literacy rate then the neighbouring areas of NWFP and Punjab. He founded the Sudhan Educational Conference which still provides free education for the poor, he also set up a muthi bhar atta scheme where a handful of each family's surplus flour was collected everyday and used to fund projects such as the construction of the Jamia mosque and the Darul Allum Madrassa in Pallandri.
Every year on 11 November, the anniversary of his death in 1961, thousands of people gather and pay homage at his tomb in Pallandri.
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