In the 1920s, Sikandar Hayat Khan slowly began to make his mark as a statesman, and in collaboration with Sir Fazli Husain and Sir Chotu Ram became one of the founders of the Unionist Party (Punjab). This was a secular party representing all Punjabis of different creeds mostly united by the "zamindar" (rural/agrarian) interest, and it soon became the most popular political group in the province. Due to his special services at this time, in various ways, the Government of British India granted a knighthood to Sir Sikandar. Between 1932 and 1934 he also had the unique honour of being the only native to be appointed acting Governor of the Punjab under British rule.