One trader was killed and six others were injured in a hand grenade attack in Kharadar's Chagla Street in Karachi on Thursday, Senior Superintendent Police (SSP) City Adeel Chandio said.

Traders in the area closed the markets following the incident to record their protest. Police sources said traders used to collect money daily which was handed in extortion to a local gang on a monthly basis.

But this practice of monthly extortion — amounting to Rs0.5 million — was stopped on strict orders of security forces.

According to sources, Wasiullah Lakho group claimed responsibility for the attack and threatened with more attacks if the traders continue to refuse paying the extortion.

Police sources said Lakho, wanted in more than 70 cases, is running Uzair Baloch's network in Lyari and carries a Rs0.7 million head money. They added that Ayaz Zehri and Rizwan alias 'Paindoo' were involved in the attack.

Those injured in the incident were shifted to the Civil Hospital Karachi.

Sindh Home Minister Sohail Anwar Siyal took notice of the incident and asked for a detailed inquiry report from the deputy inspector general (DIG) South.

The deceased was identified as 65-year-old Abdul Sattar while those wounded in the attack include Ismail, Waqas, Usama, Abdul Aziz and Babu.

Grenade attacks in Lyari have decreased since the Rangers were mandated with a targeted operation in Karachi in 2013 aimed at eliminating targeted killings, kidnappings for ransom, extortion, and terrorism in the metropolis.

Following the completion of the first phase, the second phase of the operation began in 2015 with the aim to arrest “killers of policemen, lawyers, and prosecution witnesses”. The attacks on police, nevertheless continued in 2017, with at least three of them linked to the same militant outfit.

With additional reporting by Asim Khan.