The claim came after 31 suspects were arrested for involvement in attacking schools in the area.
Raids are under way in different areas to arrest the suspected attackers.
One policeman was killed and another injured during a gun battle with armed suspects in Chilas on Saturday, IG G-B Sanaullah Abbasi said.
Police official Arif Hussain was killed in the clash which occurred during a search operation to arrest those involved in attacking schools in the area, the IG-GB said.
“A suspect, Shafiq, was also killed in the clash and another was arrested from Tangir area,” Abbasi said.
“We will eliminate terrorism from the area,” the IG G-B vowed.
Further, DIG Diamer Division Gohar Nafees said, “A suicide jacket, hand grenade and arms and ammunition were found at suspect Shafiq’s house.”
“Search operations in the area will continue till the elimination of terrorism,” the DIG asserted.
At least 12 girls’ schools were attacked in Chilas, about 130 kilometres from G-B.
Chief Justice of Pakistan Justice Mian Saqib Nisar took notice of the attack on schools and directed the interior secretary and the secretary for Kashmir Affairs and G-B to submit reports within the next two days.
G-B chief minister also ordered the chief secretary to ensure the schools destroyed in the incident are restored to working condition in the next 15 days.
According to local government spokesperson Faizullah Faraq, the restoration work will begin soon and the schools will re-open in the last week of August.
Earlier, caretaker prime minister Justice (retd) Nasir-ul-Mulk ordered relevant authorities to submit a report on the attack. Strongly condemning the attack, PM Mulk said that those involved in the incident will be held accountable.