An off-spinner, who played nine Tests and 49 ODIs, Raza was also among six players fined by a commission to inquire into match-fixing in 2000.
Former Pakistan player arrested in IPL betting raid
Senior police official Attique Sindhu told The Associated Press that Raza was among five arrested by police in a raid conducted at a busy market in Lahore last night.
Police also confiscated rupees 45,000 (Dh1800) from Raza. He was released on bail today morning after depositing surety bonds worth rupees 50,000.
The 46-year-old played nine Tests and 49 one-day internationals in between 1989 and 1995.
He was also among six Pakistan players fined by a commission formed in 2000 to inquire into match-fixing.