The encounter took place in Tank district, Khyber Pakthukhwa, bordering Souht Waziristan Agency.
District Police Officer Rasul Shah said that the law enforcement agencies were informed by theintelligence sourcesabout the presence of wanted militants near a forest on the outskirts of Tank district.
The security forces along with the police cordoned off the area and launched search operation.
The encounter later culminated in the killing of both the militants, he said.
Police also recovered hand grenades and ammunition from their possession.
Meanwhile, police today recoveredthe bullet-ridden body of a peace activist near Bhtyariwater channel in the limits of Gomal Bazar police station.
Police have launched an investigation in the matter.
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