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APA Landi Kotal Khalid Khan confirmed the casualties.
According to sources, the blast took place in a passenger vehicle which had 5kg explosives planted in it.
Officials said that at least two to three people were still trapped under the debris.
The blast affected nearby shops, including one of gas cylinders that blew up, setting the shop and other nearby shops on fire.
The injured were shifted to Landi Kotal Headquarters Hospital. Nine of them who were critical were shifted to a hospital in Peshawar.
Police and security forces reached the scene and cordoned off the area.
Witnesses said that children were also present during the time of the blast.
The area is a central point for Khyber Agency as people go to all parts of the agency from this place.
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