Police officials said the IED was detonated via remote control and was planted in a motorcycle parked on the side of the road.
The explosion occurred near a bus stand on Kohat road and also damaged several vehicles and shops in the vicinity.
Rescue and security services reached the site of the incident and shifted the casualties to the local DHQ hospital. A security cordon was also established around the blast site.
It is feared that casualties may increase as the blast took place in a crowded part of the city.
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