As many as 205 suspects, mostly Afghan nationals, were also arrested in the past 24 hours in the operation across the province, Dawn online reported.
According to The News International, the terrorists killed in Layyah district were planning an attack in Multan.
The Counter Terrorism Department (CTD) carried out a raid on the basis of a tip-off on Saturday, a Punjab Police spokesman said.
Also Read: Pakistan Attack: Taliban Militants Storm Bacha Khan University; 25 Killed
He also said that those arrested were shifted to undisclosed locations for further interrogation. Two pistols, 78 bullets, one Kalashnikov and one rifle from them.
The deployment of security personnel at all sensitive government installations was also increased, he said.
The law enforcement agencies shut Bibian Pak Daman shrine following Thursday's bombing at the sufi shrine of Lal Shahbaz Qalandar in Sehwan town of Sindh province.
At least 88 persons were killed and over 200 injured in the Islamic State militant group claimed attack.
The Daman shrine administrators said they did not know when it would be opened.