A man identified as Waqas shot dead his friend over a loan of Rs65,000 in Mandi Bahauddin's Tariqabad, the police said on Sunday.
The suspect had lent the money to his friend Mazhar. When the men met on Saturday night, Waqas asked the victim to return the money to him. Following this, an argument broke out between the friends.
"In the middle of it, Waqas lost his cool and opened fire at the victim who died on spot," the investigating officer said.
The body has been moved to the hospital for a post-mortem examination. The police have arrested Waqas and have begun questioning him. Further investigations are under way.