The incident took place in the hilly Pir Chunbbal area, 120 kilometres (70 miles) south of Islamabad.
"It was an intelligence-led search operation launched by police on Saturday," a security official told AFP on condition of anonymity.
"Four intelligence officials embraced martyrdom," he said without giving further details.
A senior Punjab province government official confirmed the operation and casualties.
Jhelum is one of the main garrison towns in the politically important Punjab province and is also known as "city of soldiers".
Pakistan has been under huge pressure to do more to destroy militant sanctuaries, particularly in North Waziristan tribal region, since US Navy SEALs killed Osama bin Laden in the town of Abbottabad on May 2.
Nearly 4,700 people have been killed across Pakistan in attacks blamed on Taliban and Al-Qaeda-linked networks based in the country`s tribal belt since government troops stormed a radical mosque in Islamabad in 2007. (*)
Editor: Kunto Wibisono
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