The defunct Tehreek-e-Taliban Punjab armed with sophisticated firearms lodged an attack at the police station, but were pushed back by the personnel.
Sources say that the police had already been intimated about the possible attack and it was ready for a faceoff with the terrorists.
Video doing rounds on social media also show exchange of heavy fire between the police and the terror outfit.
Moreover, in a statement on social media, a spokesperson of TTP Mohammad Khorasani confirmed the incident, saying he expected 'heavy casualties' in the act of terror.
Meanwhile, caretaker chief minister Punjab Mohsin Naqvi praised the officers and personnel of Punjab police for thwarting the attack, saying the men dealt bravely with the terrorists.
The incident comes hours after Defence Minister Khawaja Asif hinted at an operation against terrorism, stressing the need for a national consensus in this regard.
Addressing a session of the National Assembly, Asif stressed consensus along the lines of the Operation Zarb-e-Azb, launched earlier to completely purge the country of terrorists.
He highlighted that any negotiations with “these people” in the past had failed to yield results.
On Monday, some 100 people were martyred, and many others injured as a suicide bomber exploded himself in a mosque situated near Peshawar’s Police Lines.
According to sources, the attacker was present in the front row during Zohr prayers when he exploded himself, injuring dozens of faithful. The injured were taken to the Lady Reading Hospital of Peshawar.
Prior to the defence minister's address, President Arif Alvi summoned a joint session of the Parliament on Feb 8, as lawmakers asked for holding the crucial talks after the carnage.
“The president has called the joint sitting of the parliament at 3pm on Feb 8 (Wednesday) under Articles 48(1) and 54(1) of the Constitution,” according to an official announcement issued by the presidency.
The government would also take up crucial bills on the occasion, including the ICT LG (Amendment) Bill, 2022, reports suggest.
The government is yet to adopt a concrete plan so as to push back a new tide of terrorism in Pakistan.