An armed factory worker who had taken his colleagues hostage at gunpoint inside a factory located near Super Highway area in Karachi has been taken into custody by police, DawnNewsTV reported.

In a conversation with the media following the gunman's surrender, Malir SSP Munir Ahmed Shaikh said: "The situation was peacefully handled and resulted in Saleem's surrender to the police."

SSP Shaikh negated Saleem's earlier claim of having explosives and said that the disgruntled factory employee only had a gun in his possession along with a bag of clothes.

The senior police official claimed that Saleem was a "mentally disturbed" man who was resentful over his termination and non-payment of salary for two months.

In a fit of frustration, he had taken two employees of the factory's finance department hostage, demanding payment of pending dues and his reinstation on the job.

Earlier, a video aired by local media outlets showed Saleem holding a gun and threatening people sitting inside a room in the factory. In the video, Saleem said that he wanted to talk to the chief justice. He further claimed that he has a bag full of explosives and that he would blow it up if his demands are not met.

Police said that Saleem had fired a few shots to instil fear, but all hostages remained unharmed throughout.

Later, the factory owners also reached the factory premises and gave assurances that Saleem will be reinstated on the job and his dues will be paid.

The factory's labour leader, while talking to media persons, said Saleem was a machine technician and was forced to leave his job six months ago after he damaged a machine. He was reportedly penalised as well, as the factory management withheld the payment of Rs30,000 to Saleem.