Two constables of the Punjab police were also killed in the encounter, the police said here.
The encounter that lasted nearly two hours took place near Ratarwan village in Gurdaspur district. The police also recovered two AK 47 rifles.
Police said the Pakistani intruders had infiltrated into the Indian territory last week. Massive search operations have been launched in several villages of Gurdaspur district to look for any more intruders who could have sneaked into the Indian territory.