NEW DELHI (INP) - An Indian High Commission official in Islamabad, who works with the consular section, was arrested on Thursday evening, setting off a potential diplomatic stand-off between India and Pakistan, a report in an Indian newspaper said. This is being seen as 'retaliation to an incident in Chandigarh on Wednesday - the day of the India-Pakistan semi-final - when a Pakistani driver posted with the Pakistan High Commission was detained after he had allegedly wandered into the restricted military area near the Chandigarh Airport. The driver was apparently held for questioning overnight and released on Thursday morning. Efforts are being made to amicably resolve the situation, sources said, since this comes only a day after Prime Minister Manmohan Singh hosted his Pakistan counterpart Yousuf Raza Gilani at Mohali to watch the World Cup semi-final match between India and Pakistan. An official said the Indian official picked up is much senior to the one working as a driver in the Pakistan High Commission. Its learnt the issue has been officially taken up with Islamabad. Monitoring Desk adds: An Indian High Commission official, who was arrested on Thursday, was released on Friday, reported a private TV channel.