Demanding an inquiry into alleged rigging in the May 2013 general elections by Prime Minister Nawaz Sharif's PML-N, activists from Khan's Pakistan Tehreek-e-Insaf gathered at all main roads of the city in the morning and burnt tyres, leading to suspension of transport services.
The city's main markets and most of the schools, colleges and universities also remained closed.
Although the ruling PML-N had stopped its workers from coming out on roads to avoid a face-off with the PTI activists, at Bhatti Chowk, Hall Road and Chungi Amer Sadhu, the activists of both parties had a scuffle.
However, with the intervention of police, the situation was brought under control. Over 12,000 policemen have been deployed on all major roads in the city to prevent any violence.
Khan termed the shut down of Lahore as a big success for the PTI workers. "The response of the Lahorities on my call is more than my expectations," said Khan, who will address a rally at Mall Road later in the day.
"I am thankful to the Lahorities. I also want to apologise to them for inconvenience but their one day's sacrifice can make New Pakistan. If we do not make sacrifices today our children would need to make sacrifices tomorrow," he said.
The PTI chief said that the party workers have been holding protests since August for their legitimate demands, but justice is being denied by the government.
Khan has warned that he and his supporters will paralyse the country on December 18 if the government fails to constitute a judicial commission comprising supreme court judges and officials of ISI and military intelligence to probe the allegations of rigging in the polls.
The government also admitted that the PTI workers managed to shutdown the city.
"The PTI should be ashamed of shutting down Lahore. Schools and colleges remained closed which is unfortunate," Federal Minister Ahsan Iqbal said.
The Punjab government alleged that three people, including a child died, as the ambulances carrying them could not reach hospital because of the blockade of the roads.
"The PTI is responsible for three deaths," Salman Rafique, adviser to the chief minister on health, alleged. Punjab Chief Minister Shahbaz Sharif, the younger brother of the Prime Minister, alleged that Khan wants to break the country.
"The violent protest of Khan is before everyone. He wants to break the country," Shahbaz said. Earlier, the negotiators of ruling PML-N and Opposition PTI held an 'informal' meeting in Islamabad on Sunday night during which they exchanged documents that both sides hoped would make the next round of talks more result-oriented than earlier attempts.
PTI's general secretary Jahangir Tareen hosted federal ministers Ishaq Dar and Ahsan Iqbal at his residence. In the meeting, the PTI handed over its charter of demands to the government's team.
After the meeting, Dar said that he had also handed over a document to the PTI leadership and would sit with them on Tuesday to discuss the matter in details, Dawn reported.
Khan had announced that his party had come up with a Memorandum of Understanding that would be tabled before the government before the formal resumption of talks. Responding to a question, Dar said the ice had started melting and now both sides were trying to resolve issues amicably.
PTI leader Asad Umar, who was also present in the meeting, said the MoU was a condensed version of the earlier 13-point document discussed between both sides.
"We have brought down the number of clauses in the MoU from 13 to six," he said.
The two sides agreed to revive talks after their workers clashed during PTI protest in Faisalabad last Monday in which two people were killed and several others injured.
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