Bodies of two transgender people were found inside a room on Saturday near the railway station in Harappa.
They have been identified as Nadia and Muskaan, the police said.
The two had rented the room they were found dead in, their neighbours told the police.
The bodies were two days old. The room was opened after the neighbours complained of a stench coming from there.
The police said that torture marks were found on their bodies too. Further investigation is under way.