Investigations had revealed that Bali was involved in the planning of the attack on the cricket team.
The Khyber-Pakhtunkhwa police chief told a private television channel last Thursday that after an attack on them by Iqbal, the police retaliated and killed him along with an accomplice.
According to the Pakistani police, he is involved in 26 terrorist acts. Foreign media have also reported that he is a member of Tehreek-e-Taliban Pakistan (TTP).
The state government of Punjab had announced that a person who brings Bali's head will be given a sum of 10.5 million Pakistani rupees.
It is reported that he died in an attack by the Pakistani police.