This is the second such incident along the India-Pakistan border in Jammu division in two days.
A local resident informed the police about the bag following which the search operation was conducted in Pathankot city and Mamoon Cantonment.
The army foiled the infiltration bid -- the first such attempt this year -- by the Pakistan-based outfit in an overnight operation
Alert troops posted on guard duty along the LoC intercepted the terrorists.
Two terrorists were killed in an overnight gunfight in Hajin area of Bandipora district, officials said.
The entire area has been cordoned off while drones and sniffer dogs are being used to sniff out the terrorists that might be hiding in the area, they said.
The gun battle broke out between terrorists and security forces in Wuder Bala area of Handwara, 95 km from Srinagar, in the wee hours after Army launched a search operation in the area, Defence Spokesman Lt Colonel J S Brar said.
An armyman lost his life in the encounter, while another soldier was injured.
Four Lashkar-e-Tayiba (LeT) terrorists were killed in an encounter with security forces on Monday in Shopian district of Jammu and Kashmir, police said.
The martyred policemen were identified as Constable Ishfaq Ahmad Mir, Constable Javaid Ahmad Bhat, Constable Mohammad Iqbal Mir and SPO Adil Manzoor Bhat.
Security forces are carrying out searches in various areas to nab the six terrorists, the source said.
The Army has foiled an attempt to push in arms and ammunition by Pakistan from across the Line of Control (LoC) in Keran sector of Jammu and Kashmir and recovered a cache, including four AK 74 rifles.
Mukhtar Hussain Shah, a resident of Nar village in the district's Mendhar tehsil, was disturbed as he was facing some domestic issues, he said, adding that he was not summoned as a suspect.
Acting on specific intelligence inputs about the presence of militants in Aragam village of Bandipora, security forces cordoned off the area and launched a search operation, an army official said.
A senior police officer said army and police had jointly surrounded Chattibandi area of the Bandipore district on Tuesday evening on specific information about the presence of terrorists there.
Four AK rifles, magazines, grenades, pistols, a satellite phone, a GPS device, geo-satellite maps of Jammu and Kashmir, besides Pakistan-made edible and electronic items were recovered from them.
Two Army personnel were injured in the gunbattle.
A total of 26 Army personnel, including three officers and five paratroopers, and seven civilians have been killed in eight terror attacks since October 11, 2021 in the twin districts.
The encounter broke out in Padgampora village after security forces launched a cordon and search operation around 2.30 am following information about presence of terrorists there, a police official said.
Five other personnel were injured along with two civilians, including a 10-year-old girl.
The army cordoned off the area and fired in air to maintain area domination, an official said, adding reinforcements have been rushed.
The terrorist, identified as LeT's Asif Maqbool Bhatt, was killed in a brief encounter in Sopore in the valley's Baramulla district, police said.
The encounter took place in Hajin area of north Kashmir's Bandipora district on Wednesday.
Saifullah, the Pakistani terrorist who masterminded at least three attacks on security forces during the past month, was killed in the encounter with security forces, a police official said.
'It is a matter of concern. The number of forces on a 'naka' point is less and is normally in a remote area where they (terrorists) conceal themselves by coming along with civilians and then fire on the forces. We have faced losses and they have managed to flee a few times, but, we will soon find a response to this tactic and end this problem'
The security forces had launched the operation following specific input about the presence of NSCN-K rebels near Votnu village in the district.
A militant was on Wednesday gunned down in Baramulla in an encounter during which an armyman also lost his life.
An army officer, a trooper and three terrorists have been killed in the three-day-long north Kashmir gunfight, according to the army's spokesman in Srinagar.
The Army foiled two infiltration bids and engaged terrorists in a gun battle in north Kashmir Kupwara district killing seven terrorists. A defence spokesman said in Srinagar that troops foiled an infiltration bid on the Line of Control in the Tangdhar sector of north Kashmir Kupwara district, killing three militants.
One army trooper was killed in a fierce encounter in a forest area in north Kashmir Kupwara district on Monday.
Singh, who was decorated with President Police Medal about four months ago, continued to be grilled by a team of police and intelligence investigators.
Blowing a hole into the Union government claims that terror funding had been badly hit by the demonetisation of Rs 1,000 and Rs 500 notes, the new currency notes were recovered from the possession of the terrorists who were killed in an encounter in Jammu and Kashmir.
As the security forces were engaged in the exchange of firing with holed-up terrorists, a large number of protesters started pelting stones at the law enforcing agencies.
Brigadier Gurmeet Kanwal (retd) lists why India must not do away with AFSPA, but ensure enough transparency to avoid confrontation with human rights.
Nine Army personnel including two JCO's and an arrested Pakistani terrorist have been killed and three security men injured since the commencement of the operation on October 11.
2 other terrorists who were killed in the encounter include Divisional Commander Muhammad Bhai, a non-local Waseem, a resident of Drubgam, Pulwama.
The Army on Sunday foiled an infiltration bid on the Line of Control in the Rajouri district of Jammu region.
Pakistan dropped weapons and some cash in Indian currency using a drone in Jammu and Kashmir's Rajouri district, Director General of Police Dilbag Singh on Saturday said, announcing the arrest of three Lashkar-e-Tayiba terrorists who had picked up the consignment near the Line of Control.
Security forces killed two terrorist 'commanders' of the Hizb-ul-Mujahideen in a fierce gunbattle in Doda district of Jammu and Kashmir, the police said on Monday.
The 15-day long Keran anti-infiltration operation has been called off, according to a top Indian Army officer.