Those killed in the exchange of fire include Tehreek-e-Taliban Pakistan (TTP) commander Islam and Mohibullah who were involved in various terror activities, officials said.
A huge cache of arms and ammunition was also recovered from their possession.
Intelligence agencies raided a house near Qazi pump area where the militants were believed to be hiding. The owner of the house was also killed in the firing between the militants and security forces.
In November, 31 people including three Sikhs were killed and over 40 others injured in the bomb blast at the Friday Market (Juma Bazar) near an imambargah, a Shia religious place, in Orakzai tribal district’s Kalaya area, bordering Afghanistan.
Prime Minister Imran Khan had strongly condemned the terrorist attack.
Orakzai, a terror hotbed, is one of the seven semi-autonomous tribal regions of Pakistan which has a porus border with Afghanistan.