Police on Saturday said that all the 17 civilians who were holed up with militants in a residential house in Dialgam area of Islamabad district have been rescued.
Earlier a standoff was going on after a cross-firing between government forces and holed-up militants in Islamabad district, police said.
Police said that after rescuing all the civilians from the area, operation against the militants has been resumed.
A lady and a youth was killed earlier after hit by bullets near the encounter site.
At least 12 more civilians sustained injuries during clashes which started soon after forces started operation against the militants.