The clashes took place between Ahle Sunnat Waljamaat (ASWJ) members and the Shias. Things had heated between the rival groups following the death of a person a few days ago.
An intermittent exchange of fire ensued after members of rival groups confronted each other. The firing killed three people on the spot, while two more died as they were being shifted to a hospital.
One person died while undergoing treatment at the hospital.
As the firing continued well into the evening, bullets claimed the lives of five more people.
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Six people were also reportedly injured and were being treated at the hospital.
Rangers paramilitary force has been summoned to bring the situation under control.
Majlis-e-Wahdat-e-Muslimeen, a Shia political party, called an emergency press conference and announced a three-day period of mourning for the tragedy.