Two policemen were also injured in the clash which was triggered when a police party raided a militant hideout in Okara district, Xinhua news agency quoted a senior police official as saying.
The police and intelligence personnel conducted a joint operation, he said.
The injured policemen were taken to a nearby hospital.
Police said that during the joint operation with intelligence personnel they recovered arms and ammunition from the hideout of the militants, who are reported to be from Al-Qaeda militant group. The house was sealed for further investigation.
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