Pakistan's Geo News reported that the Indian High Commission took Gulzar into protective custody and sent him back to India.
The report said, the Indian High Commission took this step fearing possible reaction to Afzal Guru's hanging.
However the Indian High Commission has denied any role in Gulzar's return to India.
The High Commission said: "Gulzar saab's visit to Pakistan was a private one. The Indian High Commission, Islamabad was not aware of his itinerary and no one from the mission gave him any advice regarding his return to India. In fact, the Indian High Commission was even in touch with him. The news that he has been advised to return to India by the Indian High Commission, Islamabad is false and fabricated."
Gulzar had arrived in Pakistan in Tuesday for a private visit to participate in the Karachi Literary Festival. He was to spend time with members of Lahore's literary fraternity, including poet Amjad Islam Amjad, before leaving for Karachi.
The lyricist was accompanied by Dedh Ishqiya producer Vishal Bhardwaj and his wife Rekha, Pakistani film director Shahzad Rafiq and producer Ayub Khawar.