"Security forces (Pakistan Rangers and police) on Saturday 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 issued here.
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.
According to officials, a joint team of security forces conducted today's raid on a tip off. The team warned the terrorists to surrender but they opened fire on it. In an exchange of fire, a terrorist was killed.
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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