The Counter-Terrorism Department (CTD) received information that a cell of 13-14 "Al-Qaeda terrorists" was hiding in Sheikhupura district of the province to "launch attacks on police personnel in and around Lahore", the statement said.
The CTD raided a place in Kheroki Malian in the early hours of Wednesday to arrest the suspects.
"In response, the terrorists started firing at CTD officials and divided themselves into 2-3 small groups. The CTD team took cover and retaliated in self defence. When the firing stopped, nine terrorists were found dead, killed by firing of own accomplices, whereas 4-5 succeeded in fleeing from the scene in darkness," the CTD statement said.
The CTD recovered 6 kg of explosive material, prima cord, four Kalashnikov rifles, five pistols, five motorcycles, and bullets from the scene.