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Bukhari, who was in his 50s, was leaving his office in Press Enclave in the city centre Lal Chowk for an iftar party when he was shot, officials said.
While one of the personal security officers (PSO) guarding him was killed, another policeman and a civilian were injured, they added.
The condition of the two injured in the shooting, which comes a day ahead of Eid, is critical, they said.
It was not immediately clear how many gunmen attacked Bukhari, who earlier worked with The Hindu newspaper as its Kashmir correspondent.
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