The Bomb Defusal Squad discovered it in a bag with "Saghir al Qaeda" written on it.
According to the deputy inspector general (DIG) west, at least two suspects were arrested as soon as the bomb was found.
"Police and Rangers were the target of this remote controlled device," he added.
Police also awarded Rs50,000 to the informant, who was a police official.
On Friday, seven people, including a policeman, were killed and at least 17 others were injured when a powerful bomb exploded outside an Imambargah in Chittian Hattian area of Rawalpindi.
One witness said that when the bomber was stopped at the gate of the Imambargah, he detonated his explosives. Another added that soon after power failed in the area, the blast occurred.
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