Police officials received a tip-off after which it raided and arrest four men and recovered eight hand grenades and other explosive material.
The suspected terrorists are said to belong to the proscribed Tehreek-e-Taliban Pakistan (TTP). Two of them named Yasir and Rashid hailed from Lahore, while Saeed Khan hailed from South Waziristan.
They are suspected of plotting a terrorist attack on the railway station. The hand grenades have been defused by the bomb disposal squad.
Police have started further investigations and are interrogating the suspects for more information.