The blast reportedly took place outside an arms dealership.
The building above the arms dealer houses the Peoples Labour office for Peshawar, an office affiliated with the Pakistan Peoples Party.
Many cars were damaged and windows of shops in the vicinity were shattered by the blast.
Rescue efforts were underway.
This is the second blast on Wednesday targetting the PPP or its related offices in Peshawar.
Earlier in the evening, a small intensity explosive device went off near the house of PPP leader Akbar Khan Mohmand on Shami Road.
The blast had damaged the boundary wall of the house. An official of the local police told The Express Tribune that no one had been injured and only a section of the wall had been damaged.
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