"We know the motive of this attack but I want to tell that this is a very unsafe game being played against the Pakistan Muslim League-Nawaz (PML-N)", Information Minister Marrium Aurengzeb said adding that "this politics of hatred" should be stopped now.
The attacker was identified as Abid Hussain, 21, who belongs to the Tehreek-e-Labbaik Yarasoolallah Pakistan (TLYP), according to a preliminary investigation.
Police said the bullet had hit Iqbal in the right arm and gone into his groin.
"PTI strongly condemns [the] attack on Interior Minister Ahsan Iqbal", Fawad Chaudhry tweeted.
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He's also ordered the National Guard to deploy troops to the border to address what the administration calls a "crisis" there. And the President remarked it's certainly a big achievement since "I get nothing but bad publicity".
Many of its supporters say PML-N, despite repeated denials, wants to ease the blasphemy laws.
Jam Sajjad Hussain, a rescue services spokesperson, said that Iqbal was getting into his vehicle to leave the rally when a "young man" fired at him "several times".
The chief minister of Punjab, Shehbaz Sharif, condemned the attack. "PMLN will not be browbeaten into submission..."
The source wished the injured Pakistani minister a quick recovery.
Iqbal, who was touted as a potential prime minister when Sharif was ousted last July, is a US-educated lawmaker from a political family long associated with the PML-N. He has two portfolios, including minister of interior and minister of planning, development and reform.
Despite the setbacks facing the PML-N, the party has won a string of recent by-elections, proving it will likely remain a force in the next polls.