A diamond necklace worth Rs 10 lakh, which was stolen from an Indian trader at an India Show here, was recovered by Pakistan police today and two men allegedly involved in the crime were arrested.

"We arrested two men named Mohammad Shakil and Mohammad Salim and recovered the necklace," Superintendent of Police Liaquat Malik told a news conference in Punjab's provincial capital Lahore.

The crime was solved in less than 48 hours since the theft at Expo Centre's 'The India Show' here was reported on he said. The timely action by police had saved Pakistan from embarrassment, the police chief said. Shakil had allegedly stolen the necklace with the help of Salim, Malik said.

"With the help of the National Database and Registration Authority, we identified the main accused and arrested them from Lahore's Ferozpur Road area," he said. Shakil told reporters he planned the robbery with Salim after learning that diamond jewellery was on display at the Indian exhibition. A trader named Kamal Kant of ND Diamonds had lodged an FIR about the theft on Sunday.

At least 60,000 people visited the three-day trade show, the largest ever India-specific exhibition organised in Pakistan. Some 110 stalls showcased products as diverse as jewellery, cosmetics, chemicals, textiles, auto components, handicrafts and engineering goods.

Authorities had faced embarrassment after the theft and Punjab Chief Minister Shahbaz Sharif ordered police to immediately trace and arrest those involved.