A heavy contingent of police has been sent to the area to bring the situation under control.
Sialkot District Police Officer Umar Saeed Malik said the man, identified as Priyantha Kumara, was a Sri Lankan national, the report said.
The incident took place on Wazirabad Road in Sialkot, where reportedly the workers of private factories attacked the export manager of a factory and burnt his body after killing him, the report said.
Videos shared on social media showed hundreds of men and young boys gathered at the site.
Pakistan Punjab Chief Minister Usman Buzdar took notice of the murder, terming it as a "very tragic incident", while the spokesperson for Sialkot police said details would be shared with the media after initial investigation.
Buzdar has summoned a report from the inspector general of police and ordered a high-level inquiry into the matter.
"Every aspect of the incident should be investigated and a report should be submitted. Action should be taken against those who take the law into their own hands," the chief minister said.
A similar incident in Sialkot in 2010 had shook the country when an angry mob had lynched two brothers in the presence of police, declaring them dacoits. The incident sparked shock and horror across the country as cellphone footage of the heinous murders was uploaded to video-sharing sites.