The gun fight erupted after more than 40 militants armed with rockets and assault rifles stormed a security post in Baizai town, where security forces have been trying flush out insurgents, local official Maqsood Hussain said.

The paramilitary post, located in a sensitive area facing the eastern Afghan province of Kunar, had recently been reinforced by soldiers following intelligence reports that militants were planning an assault, he added.

"Troops launched a counter-attack and killed at least 15 militants and wounded another 15 rebels," Hussain said. Two soldiers were wounded in the clash, he said.

A security official confirmed the incident and the militant losses.

Pakistan's northwest and tribal areas have been wracked by violence, mostly targeting security officials, since hundreds of Taliban and Al-Qaeda fighters sought refuge there after the US-led invasion of Afghanistan in 2001.