A man - who refused to share his name fearing action by the wildlife department - started screaming when he found the crocodile near a fishpond in Ramazan Hijab village near Thatta.
Alerted by his screams, several other residents rushed to the site and shot the reptile. The villagers say three to four crocodiles have been spotted near the fishpond, spreading fear among locals, The Express Tribune reported.
The shooting occurred earlier this week, after which residents brought the reptile's body to an old factory and kept it on display.
Fazal Shah, the game officer of the Sindh Wildlife Department, said, "Stern action will be taken if someone is found guilty. It is illegal to kill these animals."
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Even after visiting the village, Shah was unable to confirm who shot the crocodile. According to Shah, there are around 150 crocodiles that live in and around Haleji Lake.
"These crocodiles don't harm anyone," he said, adding that a minor girl was, however, injured in 2002 when a female crocodile came out of its sanctuary.