The people in Haji Camp area of Peshawar after finding a bomb device informed the law enforcement agencies about it.
The bomb disposal squad reached to the spot and defused the bomb device.
AIG Peshawar Shafqat Malik talking to media said that the bomb was carrying 11 kilograms of explosives and was kept in a water cooler.
The bomb device if detonated could have cause large scale devastation and huge fatalities as it had ample explosives to demolish a multi-storied building.
Moreover, a wanted terrorist involved in attacks on security forces was arrested from Peshawar, security sources said.