Five terrorists, affiliated to banned outfits, were killed by the Counter Terrorism Department during an encounter in Gujrat, late on Wednesday.
The CTD sources said on intelligence reports, an action was launched against the militants in Kanja area, where the terrorists resorted to fire.
In retaliatory fire, five terrorists were killed while three others managed to flee taking advantage of the darkness.
The sources said the terrorists were planning to target secret installations in Gujrat and Kharian.
Weapons and explosives were seized from the possession of terrorists, the sources said and added that they were affiliated to Al- Qaeda and Tehreek-e-Taliban.