"Three gunmen attempted to enter the Pearl Continental hotel, killing a security guard as they stormed the building", said a statement released by the Inter Services Public Relations (ISPR), the army's media wing.
Firing was underway at the Pearl Continental Hotel after three to four armed militants barged into the facility, Dawn News quoted Gwadar station house officer (SHO) Aslam Bangulzai as saying.
Heavy contingents of police and security forces soon reached the area and started an operation.
A special anti-terrorism force was reported to be fighting the attackers. Foreign delegations often stay at the hotel when visiting for work.
The attack came just weeks after 14 members of Pakistan's armed forces were attacked and killed while traveling on a highway near Ormara, an area in the same region. He also said that "95 per cent of the hotel has been evacuated".
The province, the country's poorest, has always been known to be at risk due to activities by militants, which include the Pakistani Taliban and other terrorist groups, according to the BBC.
He called for a "well planned and strong action against the terrorists", adding that he is "in touch with police and local administration" regarding the situation.
It sits isolated on a ridge overlooking the Arabian Sea port city of Gwadar, formerly a small fishing village but now touted by officials as "the next Dubai" thanks to the multi-billion dollar China-Pakistan Economic Corridor (CPEC).
Balochistan, home to a long-running insurgency, is Pakistan's poorest and least developed province.
Pakistan has deployed specially trained security forces in Gwadar and other parts of the country hosting CPEC-related infrastructure projects to protect them and Chinese engineers against militant attacks.
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