The terrorists belonged to the Jamaat-ul-Ahrar (JuA) group, the Crime Terrorism Department of Punjab police said.
A CTD spokesman said the department received information that eight JuA terrorists had planned to attack a shrine in Multan.
The terrorists were hiding in Layyah district, some 350 km from Lahore, and waiting for orders of JuA chief Omer Khalid Khorasani to launch the attack today, the spokesman said.
The spokesman said four hand-grenades, 1 rifle, 2 pistols were recovered from them.
The CTD has killed 11 JuA terrorists since a member of the group carried out a suicide blast in Lahore on February 13, killing 15 people including senior police officers.
Last week, the CTD killed six JuA terrorists in Khanewal district of the province.
Pakistan has stepped up its offensive against militants after a suicide blast at the famed Sufi shrine of Lal Shahbaz Qalandar in southern Sindh province on Thursday killed 88.
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