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"The blast killed at least eight people and wounded more than 20 others," top administration official, Mehmood Aslam, told AFP.
"According to our initial information, the bomb was planted near the video CD and mobile shop surrounded by small kiosks selling tea and other edibles," he said.
Emergency staff at the local hospital confirmed that eight bodies and more than 20 people with injuries were admitted after the blast.
There was no immediate claim of responsibility for the attack, nor was it clear whether the shop was deliberately targeted or whether the bombers were targeting people sitting at the nearby kiosks having a cup of tea after Friday prayers.
DVD and CD shops have been bombed in the past by militants who deem their business "un-Islamic".
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