Police raided Darul Uloom Usmania in Rakh Shadan area, 45km from here, before dawn on information that a timber-laden truck was also carrying a huge consignment of weapons.
The people in the one-room seminary opened fire when the police raided it. The fire was returned and a wanted terrorist was killed, police said.
Musa Koti, the head of the seminary, his son Manzoor, Kaleemullah, Bashir, Sajjad and Amanullah were arrested, DPO Dr Rizwan said.
Two machine-guns, 14 mortar shells, five explosive belts, 10kg of high-intensity explosive, 22 grenades, eight grenade-launchers, 15 time fuses, 16 rocket-launcher fuses, rifles and anti-tank mines were seized.
Currency notes of Rs700,000 from a bag and Rs150,000 on the dead terrorist were also seized.
Regional police officer Mubarik Ali Athar said that the terrorist killed might be commander Abdullah of the Baitullah Mehsud group.
