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After researching some more it seem like they are not arains. There has been confusion because of politician of similar name and period was also arain once in Punjab.
"This is a myth which has spread through the Arain community like wilfire. The reason or cause of all this confusion and debate is actually quite simple. After researching the name Sir Shah Nawaz I found a Punjabi Arain politician belonging to the powerful Mian Family of Baghbanpura by the name Mian Sir Muhammad Shah Nawaz. Now Mian Sir Muhammad Shah Nawaz lived in the same time period as Sir Shahnawaz Bhutto and probably from what I could find did chair the All India Arain Convention of 1905."
http://en.wikipedia.org/wiki/Talk%3AShah_Nawaz_Bhutto
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