A gunfight is currently going on between the terrorists and security forces, reports said.

Most of the guests who were residing in the hotel have been evacuated.

"At around 4:50pm we got reports that there are three to four armed men in PC Hotel," the SHO told Dawn News, adding that "the firing is ongoing but there are no reports of any casualties yet".

Frontier Corps personnel have cordoned off the hotel and no one is allowed to go near the area, Dawn NewsTV reported citing police sources.

The Pearl Continental is a five-star hotel. It is often visited by business and leisure travellers.

Balochistan Liberation Army, the separatist, said it has carried out the attack to target Chinese and other foreign investors, BBC reported.