Warnings of possible violence in Karachi following arrest of Altaf Hussain, the influential Pakistani politician living in exile in London, on suspicion of money laundering. <br />One of Pakistan’s most powerful politicians was arrested in London on Tuesday, sparking panic in Karachi, where gunshots were fired, residents began stockpiling essentials and British diplomatic facilities were closed. <br />Police have arrested one of Pakistan's most well-known and divisive politicians on suspicion of money-laundering, sparking fears of violence in his power base of Karachi where businesses closed early and residents rushed home. <br />Altaf Hussain, the leader of Pakistan's powerful Muttahida Qaumi Movement, or MQM, was being quizzed by police this afternoon, as officers searched the house where he was arrested.