The Bomb Disposal Squad (BDS) 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 yesterday 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.
A young suicide-bomber, wearing a suicide vest with 15 to 20 kilogrammes of explosives, blew himself up near the main exit gate of Parade Avenue last evening, causing massive devastation.
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