The injured were taken to the Abbasi Shaheed Hospital, where they are now said to be in a stable condition, Express Tribune reported.
The body of the deceased was handed over to the family following the completion of medico-legal formalities.
The police identified the suspects as Mudassir, Abdullah Shah, Shamu and Deen.
"According to the locals, the staff of a welfare orgsation had arrived in the area for distribution of ration a day ago, where a clash broke out with an unidentified man over the formation of a queue," the police said. The dispute was later resolved.
However, the next day, four men came and started shooting at the staff that had arrived in the area to resume the ration distribution.
The police claimed that all the suspects were residents of Surj town, and raids were being conducted to arrest them.
People in Pakistan are facing a hunger-like situation as authorities are not distribution adequate amounts of food aid.
The contagion has infected at least 6,217 people and killed 113 others in the country so far.
( With inputs from ANI )