Meaning
Utterly enamoured and distractedly devoted, the condition of one madly in love and lost to the beloved.
Literally: passionately attached and enamoured
How Iqbal uses it
This paired phrase intensifies the lover's surrender, doubling distraction (wala) with infatuation (shaida). It marks the heart wholly given over, the self dissolved in devotion to the beloved.
See it in the verse