Acting on creditable information, police team raided a house in Manghopir area where they were engaged in a gunfight by a terrorist, Inspector General, Sindh, Fayyaz Leghari told reporters.
"The terrorist was killed and we seized large amounts of explosive material, two suicide jackets and grenades.
"It appears that the terrorists were planning to carry out attacks by joining the Muharram processions today," he said.
Leghari said further investigations were being carried out in the matter.
Some suspects might have escaped and they could be behind the Abbas Town bombing which killed two people last week, the police official said.
Security was on high alert for the Muharram and Ashura processions in Karachi as around 40,000 police and paramilitary rangers patrolled the city.
Late last night, police had recovered and disarmed a bomb found near Safora Goth area on a road which is usually used for Muharram processions.
Meanwhile, federal minister for religious affairs, Syed Khursheed Shah has said that the Tehreek-e-Taliban were behind the insurgency and violence in Karachi.
Shah said that Talibanisation has raised its head in Karachi and the government is trying to curb it.
Taliban is involved in Karachi unrest, he said adding, these are not the activities of any political party activists.
