Singh was shot dead in Peshawar on May 29 by bike-borne assailants while he was on his way home from his shop. He had shifted to the city with his family nearly 20 years ago and was a highly respected figure in the region. He was known for promoting religious harmony and discouraging violence.
According to a statement by the CTD, an operation was conducted in the Ghalla Mandi area of Peshawar and the alleged target killer, identified as Sheheryar Sultan, was arrested, the Express Tribune reported.
An investigation officer told the daily that the activist "was killed for failing to pay extortion".
"The suspect is part of a criminal group involved in extortion," the officer said, adding that they also found evidence of Singh previously paying extortion money.
The CTD said that the accused also named some accomplices during the investigation, for whose arrest a separate team was formed, Dawn online reported.
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