At least two policemen were killed on Friday morning in a terrorist attack in the diplomatic area in Pakistan's southern port city of Karachi, local media and police said.

Deputy Inspector General of Police of Karachi confirmed that two policemen were killed when a group of terrorists opened fire at them in the diplomatic zone where several foreign missions are located.

According to the reports, around four terrorists riding on a vehicle reached the area and started firing and hurled a couple of hand grenades at the police personnel.

Soon after the gunfire, police and security forces rushed to the site and cordoned off the area.

Police said they had launched an operation to clear the area from the militants.

Around three to four terrorists are still present in the area and are having an exchange of firing with the security forces, local media reported.

A state of emergency has been declared in all the hospitals in the city.

A separatist group, Balochistan Liberation Army, has reportedly claimed the attack, but there is no official confirmation on it.