Firing is still on near the Air Force base Chakki river.
The terrorists, believed to be 4-5 in number, launched the attack at the base in the wee hours.
Meanwhile, authorities said the helicopters and other
equipment in the Air base was safe.
An unknown number of militants have launched an attack on the army and police personnel after a combing operation was launched yesterday in the area between installation and Chakki river, police said
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The attackers, who had abducted an SP yesterday, had also made calls to Pakistan, police said.
The attack comes days after PM Narendra Modi's unscheduled visit to Pakistan.
It is the second big terror attack in Punjab within less than a year as last year three militants stormed a police station in Diana Nagar before being eliminated after 12 hour gun battle.
Yesterday, five suspected militants abducted an SP and two others and thrashed them before dumping them from vehicle.
After the incident a combing operation was launched in the border areas of Pathankot and Gurdaspur districts.