The clash broke out when security personnel were conducting a search operation in Kharotabad area of Quetta, the capital of Balochistan province, this morning.
An officer was among the security personnel who were injured when the militants lobbed grenades and opened fire.
Police officials said two militants blew themselves up to avoid capture.
Three others were killed by the security forces.
Deputy Inspector General of Police (Operations) Fayyaz Sumbal confirmed the death of five militants.
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The security forces declared the area clear after completing their operation.
Sumbal told reporters that law enforcement agencies conducted the search operation after receiving information about the presence of suspected terrorists in Kharotabad.
The dead and injured were taken to a nearby hospital and the wounded security personnel were out of danger, he said.
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