[8] In 1989, he replaced Burkhard Ziese as caretaker manager two days before facing the United Arab Emirates at the second leg of the 1990 FIFA World Cup qualification in February 1989.
He again coached the team from 2003 till 2005, leading in a three match friendly series in the last year against India until eventually being replaced by Salman Sharida.
Lutfi was appointed the head coach for Khan Research Laboratories before the start of 2011-12 Pakistan Premier League season.
[13] In 2017, Lutfi was appointed as the head coach for second division side Sui Southern Gas after a successful tenure with Khan Research Laboratories.
Following the expulsion of Faisal Saleh Hayat by FIFA, Lutfi was assigned the head coach role again in 2019, for a tour in Malaysia, until the Pakistan Football Federation was banned again briefly after.