According to Express News correspondent Junaid Khanzada, Rehman was sitting in a gathering near the Memon hospital area in Hyderabad when unknown armed men on motorcycles approached him and shot at him.
Rehman, who was shot four times in the chest, was rushed to the Civil Hospital but he succumbed to his wounds.
His companion, Sheroo, received bullet wounds in his shoulder.
Rehman was a senior worker of the Muttahida Qaumi Movement (MQM). He was first elected as a UC deputy nazim in 2005.
Large numbers of MQM members gathered outside Civil hospital as news of the attack spread.
Altaf Hussain demands action against killers
MQM chief Altaf Hussain in an early morning statement condemned the attack on his party's Hyderabad sector B joint incharge's killing, and demanded that authorities to arrest the killers.
He termed the Hyderabad murder, along with attacks on the Bohra, Ahmadi and Hindu communities as part of a conspiracy against peace and prosperity in the country.
Hussain demanded that if President Asif Ali Zardari, Prime Minister Raja Pervez Ashraf and Interior Minister Rehman Malik are seen to be reluctant in taking action against the culprits, they should listen to their own conscious and resign from their posts.
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So now the target killing has spread to Hyderabad from Karachi. Stakeholders should take immediate action before it spreads to whole country.
@ahsansheikh: tit for tat
Is this the first salvo fired by TTP against the MQM after their threat yesterday? Time to think about how much longer is it possible to rely on the administration to provide protection. How can political parties guard the interests of the country if they cannot even condemn such murder in one voice?