The plane crashed into the pond in Sarhali Kalan village of Kasur district, 50 km from Lahore, on Monday night.The village is located about 8 km from the border.
Officials of the district administration, army personnel, intelligence operatives and a bomb disposal squad rushed to the spot yesterday morning after TV news channels aired footage of the plane.
The small aircraft made of fibreglass was about five feet long with six-foot wings.
It was fitted with batteries and other instruments.
The plane, which was flying at low altitude, was damaged when it hit the wall of a house.
A local resident retrieved it from the pond and took it home. Authorities conducted an investigation in the area yesterday.
District administration chief Irshad Husain Shah said the plane looked like a toy.
"As the incident took place near the border and in view of the threat of terrorism, the possibility of it being a spy plane cannot be ruled out," he said.The plane had been handed over to intelligence agencies, officials said