He graduated from Government College University (Lahore) and earned a master's degree in Psychology and a gold medal. He also was a member of the Debating Society of GCU.

He rose to prominence during the late 1990s, when he created the sitcom Shashlik which ran for over three years on PTV, while his first television drama as a director was Piya Naam Ka Diya in 2007, in which he acted opposite filmstar Saima Noor and Irum Akhtar. Sarmad then served as executive director for a soap serial named Mujhe Apna Naam-o-Nishan Milay, directed by his sister Kanwal Khoosat. Khoosat's TV drama, Kalmoohi that he wrote and directed, also got good reviews. In 2011, he gained significant prominence and acclaim with the TV drama Pani Jaisa Piyar that aired on Hum TV. It won him the best director award for it on LUX Style Awards. He directed Jal Pari, which was aired on Geo TV. He went on to direct Humsafar for Hum TV, which became an overnight success. His serial Shehr-e-Zaat was especially popular with women.