The seizure from the outskirts of Dhanoa village in Ajnala subdivision close to the Attari border was made on a tip-off about the smuggling of arms and ammunition from across the border.
STF Assistant Inspector General Rashpal Singh told the media: "On a specific alert our teams started a search operation and found a suspected packet in fields."
Initially, the packet seemed to be carrying a consignment of drugs. "Sensing explosives, a bomb disposal squad was summoned. The 5-kg IED along with Rs 1 lakh was found in the packet.
A day earlier, Punjab Police recovered 2.5 kg RDX, one detonator, codex wire, five explosive fuses along with wires, 12 cartridges of AK 47 Assault Rifle.
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Director General of Police (DGP) V.K. Bhawra said the recovery of RDX was made on the interrogation of Amandeep Kumar, the prime accused in the two recent incidents of grenade attacks in Pathankot. .