The 22-year-old was picked up along with a group of people for allegedly taking part in a party involving alcohol and dancers.
Consumption of alcohol is banned in Islamic Pakistan and is a punishable offence.
The reports said police raided a hotel in Lahore where a group of men were caught and it included the young left-arm spinner.
Hassan, who has played 10 T20 matches and a one-day international, is already facing a two year ban after he tested positive for cocaine when the PCB carried out random dope tests during the Pentangular Cup one-day tournament in Karachi in January.