The spot where he was picked up from is a little over a km from Bemina area where the terrorists struck on Wednesday, leaving five jawans dead and seven others injured.
The Pakistani militant opened fire on the SOG personnel with a pistol but he was overpowered and arrested, the sources said.
The militant told police that he is a resident of Multan in Pakistan and was operating under the alias of Abu Talib, they said.
Sources said the breakthrough was achieved when the intelligence agencies traced a call made by the militant to his handlers in Pakistan soon after the attack on Wednesday.
Two suspected Pakistani terrorists, disguised as cricketers had on Wednesday stormed a CRPF camp here in a 'fidayeen' (suicide) attack, the first major strike in the city in three years.