"Security forces (Pakistan Rangers and police) today conducted a special IBO (intelligence based operation) near Punjab Housing Society, Lahore. A terrorist was killed during the operation while four soldiers and two officers received injuries," the military's media wing, Inter-Services Public Relations (ISPR), said in a statement.
The terrorists were planning to launch a major terrorist attack during Easter celebrations in Lahore, the statement said.
Two suicide jackets, weapons and explosives have been recovered from the possession of the terrorists.
The team managed to arrest two terror suspects, including a woman.
Last year, at least 72 people have been killed and hundreds wounded after a bomb ripped through a children's play area in Lahore's Iqbal Park where Christian families were celebrating Easter.
Jamaat-ul-Ahrar, a splinter group of the Pakistani Taliban, had claimed responsibility for the attack.
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