In August 1970, Latif was promoted to the acting rank of Air Vice Marshal and appointed to the newly-created position of Assistant Chief of Air Staff Plans (ACAS (Plans)) at Air HQ under CAS Air Chief Marshal Pratap Chandra Lal. During this tenure, he assessed the modernisation plans o the IAF. He made first-hand observations of the frontline combat squadrons across the country. He was awarded the Param Vishisht Seva Medal on 26 January 1971. He was promoted to substantive Air Vice Marshal on 1 April 1971. He served in this appointment during the 1971 Indo-Pakistani war and was in the eastern sector when the Pakistani Instrument of Surrender was signed by Lieutenant General A. A. K. Niazi in Dacca and the war ended.