A bomb disposal squad was called to the site for inspection after the IED was recovered. The BDS then launched search operations surrounding Wagah border, The Nation newspaper reported.
Security forces also began search operation in nearby villages and areas and rounded up several suspects.
A suicide bomber killed at least 61 people on Monday at the crossing.
Over 100 people were injured in the incident and are being treated in different Lahore's hospitals where emergency has been declared.
The blast took place when a large number of people were returning after attending the flag lowering ceremony at the main Indo-Pak land border crossing, which is heavily guarded by the Punjab Rangers.
A young suicide-bomber, wearing a suicide vest with 15 to 20 kg of explosives, blew himself up near the main exit gate of Parade Avenue on Sunday evening, causing massive devastation.
Image: Pakistani soldiers patrol on a vehicle after a suicide bomb attack in Wagah border near Lahore. Photograph: Mohsin Raza/Reuters
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