Jumma Khan, 70, was killed last night in Mirpur, also known as mini England, due to thousands of people living in the UK as naturalised citizens.
Somebody knocked at Khan's door and shot him in the chest when he opened the door, police official Aslam Khan told PTI.
"The killer fled due to darkness and police was searching for him," he said.
Another police official said the killing was linked to family issues as Khan had come back about four months ago and contracted a third marriage with 40-year old Aasia Bibi.
Khan owned a lot of property both in the UK and Pakistan.