In 1921, Khan was elected to the
Punjab Legislative Council and his effective political role now began, as he became one of the main leaders of the Punjab
Unionist Party (later known as the
Unionist Party), an all-Punjab political party formed to represent the interests of the landed gentry and landlords of Punjab which included
Muslims,
Sikhs and
Hindus. he was appointed a Knight Commander of the Order of the British Empire, Civil Division (KBE) in the
1933 New Year Honours list. he in due course took over leadership of the Unionist Party from Sir
Fazli Husein. Khan led his party to victory in the 1937 elections, held under the
Government of India Act 1935, and then governed the Punjab as Premier in coalition with the
Sikh Akali Dal and the
Indian National Congress. When Khan was the Unionist Premier, he extended the offer of Parliamentary Secretaryship to
Ghazanfar Ali Khan, who became a strong backer of the Unionist Party in the assembly. This government carried out many reforms for the better of the Punjabi
zamindar or
agrarian community. When Indian farmers faced a crash of agricultural prices and economic distress in the late 1930s, Khan took further measures to alleviate their misery in the Punjab – similar steps were also taken by
A. K. Fazlul Huq, the Premier of Bengal, in working to relieve the Bengali peasantry from crippling debts to private sources, using both legal and administrative measures. and supported the
Allied Powers during
World War II. Khan believed in co-operating politically with the British for the independence of India and the unity of Punjab. In 1937, soon after winning the general elections, confronted by internal pressure from many of his Muslim parliamentary colleagues and conscious of the need to maintain a balanced, equitable stance in a volatile and much-divided Punjabi political milieu, Khan decided to also negotiate with the Muslim elements under the leadership of
Muhammad Ali Jinnah. Khan and Jinnah signed the Jinnah-Sikandar Pact at
Lucknow in October 1937, Within the agreement, Khan announced he was "advising all the Muslim members of the Unionist Party in Punjab to join the League." Later, he was also one of the chief supporters and architects of the
Lahore Resolution of March 1940, calling for an autonomous or semi-independent Muslim majority region within the larger Indian confederation. Sikandar Hayat Khan, however,
opposed the partition of India and condemned "any reference to the 'Lahore Resolution' as the 'Pakistan Resolution'." To Khan, the "partition meant disrupting the Punjab and the Unionist Party, and he was not prepared to accept this". since 1940 the
Khaksars had been constantly giving trouble; he was having a rough time within the Muslim League with
Malik Barkat Ali and others; and in the Legislative Assembly
Bhai Parmanand and Master
Tara Singh were questioning his increasingly inconsistent stance over Pakistan and Punjabi unity. Khan's legacy was challenged when
Malik Khizar Hayat refused to comply with League demands in 1944, leading Jinnah to repeal the Sikandar-Jinnah Pact from 1937. took a drastic toll on Khan's health, probably resulting in his early fatality. In a letter from
Viceroy Linlithgow to Sir
Leo Amery dated two days after Khan's death, the Viceroy offered a lengthy personal evaluation of Khan: Khan died on the night between 25/26 December 1942, of a sudden heart failure, at his home. ==Legacy==