The operation code-named Khyber 3 was unleashed last week to clear Rajgal area of Khyber district.
"It may be mentioned that since start of Khyber 3 operation, which commenced last week, total of 40 terrorists have been killed and 21 injured," army said in a statement.
Security forces have occupied passes and are now consolidating their positions up in high mountains in Rajgal, it said.
At least 43 terrorists' hideouts were destroyed and huge cache of arms were recovered during the operation, army said.
Separately, army said that during an Intelligence Based Operation in Jaglot area of Gilgit Baltistan, the security forces apprehended two terrorists who were trying to transport weapons, ammunition and explosives in a car.
Also, in another combing operation in Thall, 10 terrorists were apprehended and huge cache of arms and ammunition has also been recovered.
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