Balqees Bibi, in her 30s, also attempted suicide after forcing her daughters - Ishrat (4) and Muqaddas (2) to consume poison yesterday, police said.
While she survived, her daughters were pronounced dead by doctors at District Headquarters Hospital Layyah, some 350 kilometres from Lahore.
The accused, a resident of Paharpur village, recorded her statement with police saying her husband, Muhammad Amin, was a drug addict and earned nothing to feed the family.
"He had been forcing me into prostitution to meet daily expenses," she said, adding he often tortured her over the issue.
The couple also has a six-year-old son, Amir, who was at school at the time of the incident.
Police have registered a case against Balqees and her husband.