Police said the accused was arrested and confessed killing his 32-year-old daughter, a mother of one.
A blood-stained axe he was believed to have used to kill her, was also found, reported Dawn.com.
Shagufta had a young son and had divorced about three years ago.
Police quoted the younger sister as saying 'My father tied her to a tree in the jungle near our house and swung the axe at her neck, killing her instantly.'
The victim's brother, Fiaz Ali, said in a police statement that his father was angered after a lady that Shagufta worked for as a maid, offered her a position in a beauty salon.
The younger sister said that Shagufta was beaten by her father the night before her death when she announced her intention to join the salon.