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According to eyewitnesses, the doctor was passing by the FC College at 8am when unidentified gunmen intercepted his car and opened fire at it.
Dr Haider died on the spot, while his son sustained injuries. The child succumbed to his wounds at a hospital.
The post mortem report stated that Dr Haider was shot six times in the head, while his son Murtaza was shot once in the head.
Dr Haider was a leading eye specialist and a consultant at Shaukat Khanum Memorial Trust (SKMT)
"This is a sectarian killing. Ali had no personal enmity," the doctor's uncle, retired Lahore High Court judge, Justice Syed Fazal Haider told Express News.
The police have initiated an investigation into the incident.
The Superintendent at the Model Town police station, Malik Owais cautioned against calling this an anti-Shia killing whilst investigations were still underway.
The head of SKMT and chief of Pakistan Tehreek-I-Insaf, Imran Khan condemned this killing.
“[It is] distressing to see professionals being killed along with their children. We cannot tolerate these brutal acts of terror,” Imran tweeted.
Dr Haider is survived by a wife, a son and a daughter.
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