Daultana joined the Punjab Muslim League in 1942 despite being from a leading Unionist family. In 1944 he assisted in drafting the League's manifesto, promising civil liberties, elimination of official interference in elections and a progressive economic policy. He was elected to the Punjab Legislative Assembly in 1946. Daultana was of the opinion that the unity of India could not be preserved and that Muslims of the Punjab should unite with their co-religionists across India in the demand for Pakistan.
Following the creation of Pakistan, the Muslim League assumed control of the new West Punjab province. Iftikhar Hussain Khan Mamdot, as Chief Minister of West Punjab appointed Daultana to his cabinet alongside other scions of leading rural families Mian Iftikharuddin and Shaukat Hayat Khan. Conflicts plagued the cabinet, and Mian Iftikharuddin left to found the Azad Pakistan Party and was soon joined by Shaukat Hayat Khan. In 1951, after elections in West Punjab, Daultana was chosen as parliamentary leader of the Muslim League in the Punjab Assembly and invited to form a government. Daultana's cabinet, which contained just one refugee politician, was characterised as a cabinet of landlords. As Chief Minister he soon banned the Urdu daily newspaperNawa-i-Waqt which had been a supporter of Mamdot and introduced agrarian reforms within the Punjab. Daultana regarded these land reforms, which in theory gave tenants full security for tenure as long as they paid their rent and took care of the land, as the most progressive in the world. Critics however labelled them as merely cosmetic, as they made no reference to a ceiling for large estates and only tried to increase tenants' share of produce by ten percent. In reality, the regulations had little effect and landlords instead attempted to divert attention towards the jagirs held by rival politicians who had opposed the Pakistan movement. His government proposed the abolition of all jagirs made in the Punjab since 1857. This proposal met with considerable opposition, and was amended to target certain influential persons who were given grants for unpatriotic and anti-national activities in pre-independence days. Grants of land to religious institutions or to the military personnel were exemptedThe scope of the Act was further narrowed to include only grants made under the government of Unionist Premier Sir Khizar Hayat Tiwana between 1945-1947.
Lahore Martial Law 1953
During his tenure, anti-Ahmadi sentiment intensified stoked by Islamist groups such as the Majlis-e-Ahrar-ul-Islam and Majlis-e-Tahaffuz-e-Khatme Nabuwwat. In 1951 they issued demands that Ahmadis be declared non-Muslims for legal purposes, that Sir Zafarullah Khan the AhmadiMinister of Foreign Affairs resign and that Ahmadi's be banned from holding political office. During the 1953 Lahore riots despite the protesters demands being rejected by the central government, Daultana lent them his support. However when he was unable to control the rioters, the central government called in the army and imposed martial law in Lahore. Within days of Prime Minister, Sir Khawaja Nazimuddin's arrival in Lahore, Daultana had resigned. He was succeeded by Sir Feroz Khan Noon.
