The extortionist Abdul Raheem along with his two aides killed a factory supervisor for failing to pay the demanded extortion money.
The extortionist was arrested from Gabol Town locality of New Karachi.
The CCTV footage of the meeting between the extortionist and factory supervisor was first aired on ARY News.
Watching the footage, the mother of arrested extortionist called Gabol police station and provided information about his son.
Abdul Raheem is under police custody while raids are being conducted in different areas of the city to arrest two of his accomplices in the crime.
Karachi has seen alarming increase in extortion and target killing incidents despite an ongoing operation in the city to curtail such elements.