Ali, who has become a popular name in Bollywood thanks to films like "Tere Bin Laden", "Mere Brother Ki Dulhan" and "London, Paris, New York", was dressed in a dhoti and an embroidered kurta.
He walked the ramp at the first ever Lifestyle Pakistan Expo for designer brand ChenOne, and came with a dhol to add zing to the show.
He set the mood with his foot-tapping numbers including "Madhubala" from "Mere Brother Ki Dulhan", "Woh Dekhne Mein Seedhi" from "London, Paris, New York" and also grooved to some popular numbers from his albums.
A venture between the Pakistani and Indian governments, Lifestyle Pakistan Expo is a four-day event where 100 Pakistani fashion and lifestyle brands are exhibiting their collections at Pragati Maidan here.
Ali hopes the initiative bridges the gap between the two countries.
"(It’s an) Excellent crowd in Delhi. May god bless a great future upon us. Hope Lifestyle Pakistan will help in bringing the two countries closer," Ali told reporters.
He danced at a celebration event, organised by the Pakistan government, to mark the launch of the exhibition.
The event witnessed 11 leading designers from Pakistan, including Kayseria, Saai by Sahar Atif, Ran Ja, Honey Waqar, Sadi Designs, Shireen Khan, Faizaa Samee and ChenOne, showcasing their collection on the ramp.
Pakistani singer Sanam Marwi, who was here with her troupe, also mesmerised audience with her Sufi and Sindhi songs.