Born in Swabi, Khyber Pakhtunkhwa province, Fawad began playing cricket for Swabi District in local competitions. Playing as a right-arm leg spinner, he made his first-class debut for Abbottabad in 2005, playing two matches before being dropped from the side. Fawad resumed playing first-class cricket in 2009, playing for Pakistan Customs in the Quaid-i-Azam Trophy, and later that year also played three further matches for Abbottabad. His best bowling figures, 6/109, were taken for Pakistan Customs against the Karachi Whites, in January 2009.

Fawad left Pakistan in 2010, emigrating to Australia on a short-stay visa sponsored by the Yoogali Cricket Association. Soon after arrival, he applied for refugee status, claiming he was persecuted by religious extremists for playing and coaching cricket. His hometown is in northwest Pakistan, a region that borders Afghanistan and is affected by the current War in North-West Pakistan. Choosing to live in Melbourne, Victoria, Fawad took up playing with Hoppers Crossing in the Victorian Turf Cricket Association, and soon progressed to playing for Melbourne University in Victorian Premier Cricket. Fawad also participated in Melbourne's largest 'open' T20 event run by Infinity Cricket in 2011 & 2012 representing the Western Warriors who were winners. He was named the Best Bowler of the 2012 Infinity T20 Cricket Tournament.

Despite having his initial application declined, he was granted permanent residency in November 2012.^[12] Later that month, Fawad signed with the Melbourne Renegades, having been granted a special exemption to play in the Big Bash League.^[13]

He made his debut in the Big Bash League in January 2013, taking 0/34 on debut, and was subsequently selected in the Prime Minister's XI to play against the West Indies.^[14][15]

In five one-day matches for Victoria in the Ryobi One Day Cup in 2012-13 he took 10 wickets at 18.00. He also played in Victoria's last three matches in the Sheffield Shield, taking 16 wickets at 28.37, including 2 for 79 and 5 for 83 against Queensland. In the 2014/15 Bupa Sheffield Shield final, Fawad took the honour for the best figures in a Shield final. He took 8 for 89 in 40 overs with 9 maidens.

On 2 July 2013 Fawad was granted Australian citizenship, clearing him to play for the full Australian national cricket team.

A devout Muslim, Fawad has missed training sessions during Ramadan and is known to leave the field to pray during games. He has also requested that logos of sponsors whose activities he does not agree will be removed from his kit and in 2013, the logo of Victoria Bitter was removed from Ahmed's shirt, due to the fact that Islam prohibits alcohol.^[16]

On 29 August 2013, Fawad made his Australian debut play in a T20 international against England at the Ageas Bowl in Southampton.

On 31 March 2015, Fawad was named in the Australian Test Squad to tour the West Indies and England in 2015 following an outstanding domestic season for Victoria in the Sheffield Shield.^[17]

On 7 May 2015, it was confirmed that Fawad switched clubs and will be playing for Sydney Thunder during the 2015 Big B