The release of the prisoners from Karachi's district jail Malir comes a day after Prime Minister Narendra Modi and his Pakistani counterpart Nawaz Sharif warmly shook hands and exchanged pleasantries at the 18th SAARC Summit in Nepal.
The released Indian prisoners included 36 fishermen and four others, Anwar Kazmi, a spokesman of Edhi Foundation charity, told PTI.
"Our organization is providing transport to take them to Wagah border with a packet containing clothes for their families and Rs 10,000 in cash to each of the released prisoners," Kazmi said.
It was not officially known when the fishermen were arrested but Dunya TV reported that they were held about a year ago.
The government so far has not commented on the release but an official said on anonymity that it was a goodwill gesture and the arrested Indians were set free on humanitarian grounds.
"When Prime Minister Nawaz Sharif visited India in May, we released 151 prisoners," the official said.
He said India should also release Pakistani prisoners and fishermen.
India and Pakistan regularly arrest fishermen who venture into unmarked territorial waters of the two countries.
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