Karachi police on Sunday arrested a suspected drug dealer from the Pakhtunabad area of Manghopir in Karachi and allegedly recovered Rs5.1 million cash, five kilogrammes of hashish and a pistol from his custody.

Acting on a tip-off, the police conducted a raid and arrested the accused, who reportedly holds an MBA degree from the University of Karachi.

"He is a close relative of fugitive drug peddler Lal Zada and is the manager of his drug business,” Orangi SP Abid Ali Baloch said at a press conference. "He was also involved in turning black money into white through his drug business."

The police said the suspect had also established a school to facilitate his drug operations.

Nearly 3.6 per cent of Pakistan's population uses cannabis, according to a United Nations Office on Drugs and Crime report in 2013, making it the most commonly-used drug in the country.