The Counter Terrorism Department, flanked by the police, killed six alleged terrorists in the wee hours of Tuesday.
Two outlaws escaped the shootout under the cover of darkness.
Identity of the deceased and runaway outlaws could not be confirmed yet.
The joint operation was carried out in village Lager in the Manawala Police precincts.
The CTD was tipped off that the terrorists had holed up in the area and were allegedly planning attacks in Sheikhupura and Nankana districts.
Acting swiftly, the CTD personnel, accompanied by the Manawala Police, raided the hideout. But the alleged terrorists started firing on the law enforcers as soon as they took sight of them. The CTD and police personnel retaliated and a shootout ensued which continued for quite some time. As a result six alleged terrorists were killed on the spot while two others managed to escape under the cover of darkness. A cop also sustained gunshot wounds in the crossfire. The CTD claimed that sophisticated weapons and huge quantity of explosives were recovered from the hideout.
The bodies of the alleged terrorists were sent to city morgue for post-mortem. The law Enforcement Agencies have not yet revealed identities or affiliation of the killed terrorists.
Further investigation is underway.