Yar Mohammad Khan is one of the founders of the Bangladesh Awami League. He was the founder treasurer of the Awami League and one of the five members of the founding committee of the party, along with Sheikh Mujibur Rahman, Maulana Abdul Hamid Khan Bhasani and Shamsul Haque. His residence in 18, Karkun Bari Lane, Dhaka was the first main office and headquarters of Bangladesh Awami League and was so for the first few years of the party. He was also the main sponsor of Bangladesh Awami League and it was his able financing that helped mobilize and galvanize Awami League in its initial stages that contributed in bolstering the strength of the party and hence catapulted it to the position of being the main political party that eventually led Bangladesh's struggle for independence against the West Pakistan regime.