The encounter broke out at village Zunrishi in Kralpora area, 120 kms from here, last evening when a joint party of police and Army launched a search operation to flush out hiding militants, a senior police officer told PTI here.
He said the house where the militants had taken shelter was destroyed in the overnight gunbattle that ended this afternoon.
Bodies of both the militants and two policemen, who were part of the search party which stormed the house to neutralise the militants, were recovered from the debris of the building this afternoon, the officer said.
The injured policemen were shifted to hospital where condition of two of them including an Assistant sub-inspector was stated to be "serious", the officer said.
The officer said the identity and group affiliation of the slain militants could not be ascertained immediately but they are believed to be foreigners.