The police are trying to neutralize the militants, resulting in heavy firing on both sides.
The militants have been reported to have killed the security guards at the consulate.
The militants are reported to have tried to enter the Chinese consulate in a white car, which resulted in the firing incident.
There was also an explosion at the gate of the consulate.
Two policemen are reported to have died in the firing. At least one of the terrorists too was shot down and the police recovered weapons and grenades from his body.
No Chinese nationals have been reported to have been hurt in the incident.
It is not clear whether the militants managed to enter the consulate or not. Some Pakistan-based media outlets have reported that the militants have in fact managed to scramble on to the embassy’s roof.
Smoke could be seen rising from the compound in live TV footage.
At least one ambulance and a bomb disposal squad has been rushed inside the embassy. It is believed that the slain militant has an active bomb on his person.
The area has been cordoned off by Pakistan Rangers.
Besides the Chinese, the UAE and Russia too have consulates in close proximity to location of the attack. The area also has a school nearby, as well as several residences.
Some of the religious extremist groups in Pakistan are not happy with investment and projects being carried out by China in Pakistan.
The Chinese are carrying out massive infrastructural projects in the country. Some fear that the debt-funded projects could end up making Pakistan overly dependent on its northern neighbor.