Punjab home minister Colonel (retd) Shuja Khanzada was assassinated in a suicide attack on his political office in Shadi Khan village on August 16.
The Counter-Terrorism Department conducted an intelligence-based raid on a house in Iqbal Town Division's Sherakot area on the outskirts of Lahore.
In a statement issued to media, the CTD said: "It received secret information regarding the presence of some seven to eight terrorists within the limits of Sherakot police station, Lahore. They were planning to launch a big attack on officials of law enforcement agencies in the late morning."
"Four terrorists were found dead, killed by firing of their own accomplices," the statement said. The other four terrorists escaped.
"Heavy arms and explosives have been recovered from the terrorists, including AK-47 rifles, pistols, guns, live rounds, more than 10 kilograms explosives, detonators, wires, batteries and motorcycles," the CTD said.