Two policemen were killed on Sunday and three were injured in a police encounter.
The police held the encounter in Shah Belo area, Shikarpur, the hiding places of dacoits.
The police said the hideouts of the dacoits are being razed to the ground.
The dacoits opened fire on a police van resulting in the killing of three personnel on the spot.
A huge contingent of police was called and the area was cordoned off.
The Station House Officer Ghulam Murtaza Mirani and Assistant Sub Inspector Zulfikar Panhwar were killed and the injured policemen were identified as ASI Jehanzeb, Saddam Dayo and Rasool Bux Lohar.
The injured succumbed to the bullet wounds at District Headquarter hospital Dera Ismail Khan.
Houses in the area are being searched.