According to police officials, the encounter took place when culprits were trying to flee after attacking the police mobile with hand grenades and gun fire.
In exchange of fire between the militants and police, three militants were killed, while two policemen were also wounded.
Read: DSP shot dead in Karachi
Police also claimed to recover hand grenades and other weapons from the possession of suspects.
Though the suspects killed are yet to be identified, police said they were a part of the banned Tehreek-e-Taliban Pakistan.
Bodies were shifted to the Civil Hospital for examination after death.
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