Khan was raised in the Kamathipura neighbourhood of Mumbai after his family moved there from Kabul. He is an ethnic Pashtun of the Kakar tribe. Khan had three brothers, Shams ur Rehman, Fazal Rehman and Habib ur Rehman. His father was Abdul Rahman Khan from Kandahar, Afghanistan while his mother was Iqbal Begum from Pishin, British India (now in Balochistan, Pakistan).
Khan was born in Kabul, Afghanistan, on 22 October 1937.