At least eight Pakistan Frontier Corps (PFC) personnel were killed in the Jamrud area of the Khyber Agency early on Friday by heavily armed militants.
The PFC patrol party was attacked at the Gundi area paramilitary check post; the Dawn quoted official sources, as saying.
According to the daily, over a dozen militants attacked the check post, and it was followed up by a grueling gun battle which continued for over two hours.
Three other paramilitaries were injured in the attack and a PFC vehicle was also destroyed.
Security forces claimed that they had killed several terrorists, but this is yet to be independently verified.
Meanwhile, in a separate incident, a bomb explosion in Peshawar has claimed the life of a policeman and left three other persons hurt.
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The incident took place in Peshawar's Wazir Bagh area. The injured police personnel have been admitted to Peshawar's Lady Reading Hospital.
Police have since cordoned off the area and a search operation is on for those responsible for the attack.