In 1947, Ibrahim Khan instigated and organised the Poonch rebellion, and with support from the Muslim League, planned and helped in the invasion and liberation of Jammu and Kashmir.

He organised the rebellion through the use of former British Indian Army soldiers of the Muslim population who had kept their weapons after the war and were heavily armed.

[6] On 19 July 1947, Khan held a general assembly meeting at his residence where a resolution was unanimously passed for the State of Kashmir to join Pakistan.

On 24 October 1947, he defeated the forces of the Maharaja in the Poonch rebellion and founded the state of Azad Kashmir, which became a self-governing division of Pakistan.

Sardar Ibrahim was very close to Zulfiqar Ali Bhutto and had formed the Azad Kashmir chapter of the Pakistan Peoples Party.

Khan refused to betray Bhutto, resulting in the termination of his presidency through a proclamation issued by General Zia Ul-Haq, the Chairman of Azad Jammu and Kashmir Council, on 30 October 1978.

[1][6][5] Sardar Muhammad Ibrahim Khan died at his Islamabad home on 31 July 2003 after a long period of illness at the age of 88.

[1] President Pervez Musharraf and Prime Minister Zafarullah Khan Jamali paid tribute to him in their condolence messages.