The police were tipped off that miscreants would try to shift the arms and ammunition to the inner parts of the city plotting to carry out an attack.
The police stopped two men on a motorcycle at a check-post in the Khazana area on the outskirts of Peshawar.
One man managed to flee while his accomplice was rounded up. The arrested man has been identified as Ihsanullah.
Three kilogrammes of explosives, three grenades and a 9mm pistol were seized from him.
Terrorist killed in Peshawar identified as Da'ish hitman
Ihasanullah is a wanted militant while his accomplice has been identified as Rizwan, a native of Afghanistan.
Separately, a police constable and a soldier suffered injuries in an encounter with a proclaimed offender in Khanaza during a joint search and strike operation.
During a door-to-door search, the criminal and his five accomplices were found hiding in a house.
They opened fire, injuring the constable and the soldier.
Sangeer Khan, the proclaimed offender, was also injured in retaliatory fire.
Khan and four of his accomplices were taken into custody, while one managed to escape.
The injured were shifted to the Combined Medical Hospital where their condition is said to be stable.
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