According to sources, two kilograms of explosives, detonators and weapons were recovered during the operation near Moon Market area.
The arrested suspects have been identified as Abdullah Aalam, Muhammad Hafeez, Nisar Ahmed and Ahmed Tassawur who were planning to target government buildings and sensitive installations in the provincial capital.
They have been moved to undisclosed location for interrogation.
Earlier this month, Pak Army spokesperson Lieutenant General Asim Bajwa briefed media that the law enforcement agencies have so far arrested 309 people associated with Islamic State (IS) in Pakistan.
Islamic State’s attempt to expand in the country has been crushed, he said.
Bajwa said major terror attacks planned by the IS on targets, including the ministry of foreign affairs, foreign embassies, consulates and their staff, the Islamabad airport, prominent public figures, media persons and law enforcement personnel, were averted.
He also released figures on progress in its anti-militant operation, saying more than 3500 had been killed during the course of Operation Zarb-i-Azb.