The convict Faisal Shah was directed to submit two surety bonds of Rs 500,000 each to avail the bail.
The division bench headed by Justice Syed Mansoor Ali Shah heard the matter.
Earlier, the defence counsel submitted that an anti- terrorism court awarded life term imprisonment to his client in 2014 in Tipu murder case.
He submitted that the trial court failed to appreciate case facts and awarded punishment despite the fact that no solid evidence was available against his client.
He pleaded the court to grant benefit of bail to his client after suspending the sentence till the decision of his pending appeal.
However, the prosecution opposed the contentions submitted by the defence counsel and pleaded the court to dismiss the request.
After hearing the arguments, the bench agreed to the petitioner's counsel stance and granted bail to the convict.