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Islamabad - Police in Pakistan say gang members angered over the killing of one of their leaders have opened fire on passers-by in southern Pakistan, killing 14 people.

Senior police officer Abdul Khaliq Sheikh says 40 people were wounded Wednesday in the attack, which also saw assailants throw grenades in the Lyari neighbourhood of the port city of Karachi.

Sheikh says police and paramilitary Rangers chased the gunmen and killed eight in a gun battle.

He says supporters of a gang leader killed overnight in a shootout with police were behind the violence.

Karachi is the largest city in Pakistan and home to various criminal gangs and militant groups.

Lyari is considered one of the city's more dangerous neighbourhoods. Rival gangs often battle each other there.