Acting president, Syed Nayyar Hussain Bokhari administered the oath at the Aiwan-e-Sadr.
Speaker National Assembly, Sardar Ayaz Sadiq and Federal Minister for Water and Power, Khawaja Muhammad Asif were among the officials present during the oath-taking ceremony.
It was previously announced that Ali will be handed the portfolio of Minister of State for Water and Power.
Ali, who is the nephew of PML-N chief and incumbent Prime Minister Nawaz Sharif, was elected from NA-84 Faisalabad in the general elections in May.
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