The other arrested person was the alleged mastermind of a terrorist attack on a commercial hub in Lahore that killed over 60 people earlier this month.
Special Superintendent of Police (operations) Chaudhry Shafiq Ahmad said the alleged mastermind was arrested along with a suicide bomber near the police training centre at Manawan, which was attacked by terrorists twice this year.
Ahmad, who did not disclose identities of the two arrested men, said the duo was planning to carry out a suicide attack at the Wagah land border post with Amritsar.
He said the suicide bomber belonged to South Waziristan tribal region. The alleged terrorist mastermind was responsible for the attack on Moon Market on December 7 that killed 62 people, police said.