According to initial reports, the crash took place around 11:20pm when Shalimar Express, travelling from Lahore to Karachi, hit an oil tanker at Hiran Minar Phatak railway crossing.
Soon after the impact, the locomotive caught fire which quickly engulfed at least three compartments. At least six fire tenders were rushed to the site to put out the conflagration.
According to reports, high tension electricity wires near the Sheikhupura station also caught fire, plunging the city into darkness.
A railways official said rescue teams have been sent to Sheikhupura from Lahore and Gujranwala.
Rescue 1122 workers reached the site to ferry the casualties to the District Headquarters Hospital (DHQ). All hospitals in Lahore and Sheikupura have been put on high alert to deal with the possible increase in number of casualties.
Minister for Railways Khawaja Saad Rafique said that driver of the train had been killed in the incident and another train has been sent for the passengers.
Railway officials claimed that driver of the oil tanker has been taken into custody.
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