Police chief Salahuddin Mahsud said troops were searching and clearing the building after eliminating the attackers, and television footage showed bullet holes in walls, bloodstains, and broken glass.
IG KPK Mehsud had earlier confirmed that at least four persons were injured including two students in the attack. Taliban militants stormed a training institute in Pakistan's northwestern city of Peshawar Friday, as the country marked the birthday of the Prophet Mohammed.
He said six students, a security guard and two civilians were killed in the attack.
The attack sparked a gun battle between the security forces and the assailants that lasted for a long time until they were all shot dead.
Mahsud said three attackers clad in women's burqas then reached the gate in a rickshaw and opened fire to clear their way to the building.
Meanwhile, Afghanistan and the United States have accused Pakistan of willingly serving as a sanctuary for the Afghan Taliban. "We have substantial evidences to provide Afghan authorities about sanctuaries in the neighbouring country", he said.
"Is this the ISI office?" one of them asks as they enter a room and start shooting, at which point the video ends.
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Pakistani volunteers rescue a student after the attack.
All the injured have been shifted to the Khyber Teaching Hospital in Peshawar where a state of emergency was declared.
As for the deceased students, incidentally the first name of three of them was Bilal: Bilal Ahmad s/o Hussain Ahmad, resident of Shangla, Bilal s/o Khairul Basar, from Lower Dir and Bilal s/o Mohammad Arif, from Mansehra.
Amin Jan, son of Saifur Rehman, belonged to Domail in Bannu.
Those who lost their lives in the attack hailed from different parts of Khyber-Pakhtunkhwa.
“The Secretary-General extends his condolences to the bereaved families and to the Government and people of Pakistan.
"This attack is a reaction to the continued brutalities by the intelligence agencies on Tehreek-e-Taleban Pakistan and innocent people especially prisoners and clerics", the group said.