Several military jets are attacking militant positions in the area.
The offensive by Pakistan Army, in response to Saturday's attack, is targetting the group of Taliban chief Hakimullah Mehsud.
On Saturday, terrorists, dressed in Army fatigues and driving a white van, attacked the Pakistan Army Headquarters in Rawalpindi.
The gunbattle went on for 45 minutes in which four terrorists were killed.
A splinter group of the Tehreek-e-Taliban Pakistan, once headed by Amjad Farooqi, had claimed responsibility for the attack.
The strike on the Army Headquarters follows a series of bombings in Northwestern Pakistan where 50 people had died in a blast on Friday. It also comes as the Pakistan Army prepares for a major operation against the Taliban in South Wazirstan.