In 1972, Air-Marshal Abdur Rahim Khan along with the Pakistan Army's Commander-in-Chief Lieutenant-General Gul Hassan was prematurely retired from military service over his refusal to use Pakistan Air Force aircraft in Lyallpur to buzz over crowds of police agitation, demanding pay raise.

[1] He participated in the RIAF's bombing missions against Japan in the Burma theater in World War II.

[1] He later went to the United States to attend the staff college and completed a pilot's training on the jet aircraft.

[1] On 11 March 1972, Air Marshal Abdur Rahim Khan was appointed designate Pakistan Ambassador to Spain.

On 13 April 1977, he resigned his post in protest against allegations of riggings during the general elections held in 1977.: 536 [6] He immediately appealed and called for the removal of Prime Minister Bhutto over his undemocratic actions.

: 536 [6] After the military takeover of civilian government by General Zia-ul-Haq, the Chief of Army Staff, Abdul Rahim left the Ministry of Foreign Affairs and moved to United States.

[3] He bought an estate in Potomac, Maryland in the United States, and lived until his death due to kidney failure on 28 February 1990.