Chaudhary Muhammad Ali was born on July 15, 1905 at Jullundur. He took his M.Sc. degree in 1927 from the university of Punjab. Ch. Muhammad Ali joined Indian Audit and Accounts Service in 1928 and was deputed as Accountant General to Bahawalpur state in 1932. In 1936, he joined government of India as private secretary to Finance Minister, Sir Grigg. In 1945 he was appointed financial advisor for war and supply, a post never before held by an Indian.

During the drafting of the partition plan, Ch. Muhammad Ali was one of the two secretaries to the partition council, presided over by Lord Mountbatten.

On the establishment of Pakistan he become secretary general of the new government and played a key role in it's organization. In 1951, he became Finance Minister and in 1955 Prime Minister of the country. Under his leadership the Constituent Assembly adopted the constitution of the Islamic Republic of Pakistan.