At the age of thirteen, Alim Khan was sent by his father Emir Abdulahad Khan to Saint Petersburg for three years to study government and modern military techniques. In 1896, having received formal confirmation as Crown Prince of Bukhara by the Russian government, he returned home. After two years in Bukhara assisting in his father's administration, he was appointed governor of Nasef region for the next twelve years. He was then transferred to the northern province of Karmana, which he ruled for another two years, until receiving word in 1910 of his father's death.
Reign
Alim Khan's rule began with promise. Initially, he declared that he would no longer expect or accept any gifts, and prohibited his officials from demanding bribes from the public, or imposing taxes on their own authority. However, as time went by the Emir's attitude towards bribes, taxes, and state salaries changed. The conflict between the traditionalists and the reformists ended with the traditionalists in control, and the reformers in exile in Moscow or Kazan. It is thought that Alim Khan, who initially favored modernization and the reformists, realised that their eventual goals included no place for either him or his descendants as rulers. Like his predecessors, Alim Khan was a traditional ruler. He toyed with the idea of reform as a tool to keep the clergy in line, and only as long as he saw the possibility of using it to strengthen Manghud rule. One of the most important Tajik writers, Sadriddin Ayniy, wrote vivid accounts of life under the Emir. He was whipped for speaking Tajik and later wrote about the life under the Emirs in the Bukhara Executioners. Alim Khan was the only Manghud ruler to add the title of Caliph to his name, and was the last direct descendant of the Manghit dynasty to serve as a national ruler. In March 1918 activists of the Young Bukharan Movement informed the Bolsheviks that the Bukharians were ready for the revolution and that the people were awaiting liberation. The Red Army marched to the gates of Bukhara and demanded that the emir surrender the city to the Young Bukharans. As Russian sources report, the emir responded by killing the Bolshevik delegation, along with several hundred Russian supporters of the Bolsheviks in Bukhara and the surrounding territories. The majority of Bukharans did not support an invasion and the ill-equipped and ill-disciplined Bolshevik army fled back to the Soviet stronghold at Tashkent.
Alim Khan's daughter, Shukria Raad Alimi, worked as a broadcaster for Radio Afghanistan. Shukria Raad left Afghanistan with her family three months after Soviet troops invaded the country in December 1979. With her husband, also a journalist, and two children she fled to Pakistan, and then through Germany to the United States. In 1982 she joined the Voice of America, working for many years as a broadcaster for VOA's Dari Service, editor, program host and producer. Alim Khan also had a son named Shahmurad, who denounced his father in 1929 and later served in the Soviet Army.