Three alleged bandits were killed in an exchange of fire with police near Kot Lalu in Khairpur district of Sindh, officials said on Tuesday.
According to police, the suspects opened fire on a police party patroling the area, prompting retaliatory action in which all three were killed.
The deceased were identified as Mola Bakhsh Shar, Ghulam Mujtaba and Aqib Shar.
Police claimed that Aqib Shar was a highly wanted criminal carrying a bounty of Rs5 million on his head, while Mola Bakhsh Shar carried a reward of Rs2 million.
Officials said the suspects were wanted in multiple cases, including robbery, terrorism, theft and previous police encounters.
The Khairpur SSP said more than 60 criminal cases had been registered against the three bandits across Khairpur and other districts.
Following the incident, police launched a search operation in the area to look for other suspects.
Rescue workers and police shifted the bodies to a hospital for legal formalities.
Meanwhile, the families of the deceased bandits rejected the police claims and alleged that the encounter was staged.
Relatives claimed the three men were taken from their homes by police last night and were later killed on the instructions of an influential local figure.
They further alleged that police abandoned the bodies at the hospital and fled the scene.
The families have demanded a transparent inquiry into the incident and justice for those killed.