Police Elite Force and security forces launched an operation to eliminate four terrorist holed up in a compound in a small village near Lahore.
The exchange of fire, that lasted for 10 hours, started at around 2:00am. 1 police offier was killed while three were injured during the operation.
Women and children in the compound were held as hostages by the terrorists.
The troops fired teargas shells, hurled crackers and hand grenades in an attempt to enter a house from where the terrorists used heavy weapons against the police early on Thursday, leaving a policeman dead and three others injured.
security forces have taken control of the compound used by terrorists as shelter. A search operation is currently being carried out.No details were available as to how many terrorists were killed in the shootout.