Sources said the terrorist killed in the police raid were the plotters of Karachi jailbreak attempt couple of months ago. They were identified as Mateen and Sajid.
The police raided Gulshan-e-Buner, neighborhood of Baldia Town, on a tip-off regarding presence of criminals involved in jailbreak attempt.
One of the terrorists killed was scaling the wall of a house when police personnel shot him dead.
SSP Rao Anwar said terrorists attacked the police with hand grenades and opened indiscriminate fire. He said terrorists had an advantage as there was no light in the area and miscreants were moving under the cover of darkness.
Additional contingent of police was also called to the site on orders of additional inspector general police.