The control of the district fell to the hand of Taliban following heavy clashes between the Afghan security forces and Taliban fighters.
A provincial council member who confirmed the report said both governmental forces and Taliban have experienced causalities, but the figures are not known yet.
According to the reports hundreds of Taliban militants including a key Pakistan Taliban commander identified as Hafiz Rashid were killed or wounded in the clashes.
In the meantime the Taliban has claimed heavy casualties to the governmental forces.
Paktia is among the relatively volatile provinces in east of Afghanistan where the Taliban insurgents are active in a number of its remote districts.