Police had seized weapons and explosives from a car that had been stopped at a check-post in the Chattha Bakhtawar area of the city.
The driver of the car, who had been detained, gave information to the police which led to a raid on a house in the same area.
Police recovered 12 rocket launchers, two suicide jackets and six hand-grenades from the house.
Sources said the house had been vacant for two months and had previously been used as a clinic by a lady doctor.
The Shahzad Town and Chattha Bakhtawar areas have been cleared and security has been tightened in the city.
In August this year, the city police and security agencies arrested four suspected terrorists, all members of a terrorist outfit based in Mohmand Agency, from a house in Sector G-6, which is inside the high-security Red Zone. A suicide jacket was recovered from them, and they were only waiting for the bomber.
