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The anti-tank rocket, weighing 10 kgs, landed in a classroom of a government commerce college but did not explode.
The incident has sent shock waves among the security agencies as the heavy bomb, if it had exploded, could have caused extensive damage to life and property.
The rocket had a range of one km and could have hit any one of the several sensitive places - US consulate, governor's residence, Pakistan Rangers headquarters or the chief minister's residence.
Police agencies are continuing investigations, reports said.
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