The deceased was identified as Mohammad Tanjib, 30, son of Babu Sheikh of Ramchandrapur Police Station.
Sheikh Rafiqul Islam, superintendent of Pabna Police, said police arrested Tanjib from Library Bazar around 10:30 pm. He was wanted in five criminal cases, said the SP.
After confessional statement, police along with Tanjib conducted a drive in the area for recovering arms around 2:40 am.
When police reached Beribadh Bottola intersection, the associates of Tanjib opened fire on police apprehending trouble, forcing the law enforcers to fire back which triggered a skirmish.
Tanjib was caught in the line of fire while trying to flee from police custody and sustained bullet injury.
Later, he was taken to a local hospital where doctors declared him dead.
Four policemen were injured in the gunfight that lasted for 10-12 minutes.
One pistol, one revolver and two bullets were recovered from the spot.