52-year-old Abid Mahmood was yesterday kidnapped by some armed men from his house and later his bullet-riddled body was found in a deserted area near a railway station in Taxila, about 270 kilometres from Lahore, police said.
Abid was arrested on the charges of blasphemy in 2011 after he claimed "Prophethood". He was released from Adiyala Jail last week after his mental and physical condition deteriorated.
Police today registered a murder case against unidentified killers on the complaint of the deceased's brother.
Police officer Muhammad Ayub said: "Since Abid had been jailed in a blasphemy case, police are investigating the murder from different angles, including target killing and personal dispute."
He said circumstantial evidence, however, showed the killing was related to his claim of 'Prophethood'.