Born in Lahore to an upper-middle-class family, Lodhi studied political science at the London School of Economics and after receiving her doctorate from the school in 1980, she remained there as a member of faculty teaching political sociology. She returned to Pakistan in 1986 to become the editor of "The Muslim", making her the first woman to edit a national newspaper in Asia. In 1990, she moved to become the founding editor of "The News International." In 1994, she was appointed by Prime Minister Benazir Bhutto as Pakistan's envoy to the United States, a position she retained until 1997. She was once again appointed to the same position in 1999 by President Musharraf until 2002 when she completed her tenure and moved on to be High Commissioner to the UK.