According to police sources, the bomb was planted in a rickshaw parked near Airport chowk, and exploded 30 minutes back.
Sixteen people were injured as a result of the blast, two have succumbed to their injuries and four are believed to be in critical condition.
Among the injured, are six children and three women.
Three vehicles and some buildings have also been damaged in the blast.
Police and FC personnel have cordoned off the area and investigations are under way.
So far no group has claimed responsibility for the blast.
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