"Hackers are known internationally has been arrested in joint operations to other countries for several weeks," said the senior staff of the Federal Investigation Agency (FIA) Mian Idrees.
"We've dug famous hacker group Pakbugs and arrested five members of this group," he said.
Authorities seized computers and other equipment involved in various kinds of cyber crime, he said.
FIA said in a statement, the group is involved in the hijacking or destruction of thousands of websites owned by government, non-governmental and international organizations.
"They are also involved in credit card fraud and stolen credit card usage," he said.
Pakbugs maker, Jawad aka Humza trusted Ehsan based in Saudi Arabia, he said.
But founder Hassan Khan has been arrested in the northwestern Pakistani city of Peshawar, along with other members in Lahore, and Rawalpindi, Bannu.
Idrees denies involvement in terrorism and said the hackers these people were subject to suspicion of electronic crime.
Pakistan's fight against terrorism and high technology crimes in the year 2008 declared cyber-terrorism is a felony, while the electronic fraud is punishable by seven to 10 years imprisonment.