The incident took place in North Waziristan’s Ghulam Khan area close to the border with Afghanistan when paramilitary Frontier Corps troops ambushed a group of up to 20 militants.
“The troops ambushed the militants on an intelligence tip off,” a senior security official told AFP.
“Five militants were killed and two soldiers embraced martyrdom,” he said.
Another security official also confirmed the incident and casualties.
The area is remote and off-limits to journalists making it difficult to verify the army’s claims, including the number and identity of those killed.
Pakistan has been battling a homegrown Islamist insurgency for over a decade following the late 2001 US-led invasion of Afghanistan.
The Pakistan army began a major campaign against Taliban and other militant strongholds in the North Waziristan tribal area in June last year and authorities have now vowed to intensify operations both in the border regions and across the country.