According to initial reports, the explosive device was planted on the main gate of a house and a car present nearby suffered considerable damage.
"The house where the bomb was planted was owned by a person called Waqar Orakzai," reported Express News correspondent, Ehtisham Khan, adding that the device which caused the explosion was a "magnet bomb".
"600g to 700g worth of explosives were used in the device," said Khan.
He added that the explosive went off as soon as people started to come out of the mosque after offering Taraweeh prayers.
Police reports suggest that Orakzai's house was being targeted and the bomb went off as soon as he reached home after offering prayers.
"He had been receiving threats by extortionists asking for money," said Khan.
Orakzai suffered injuries while another another person standing in a shop nearby was also injured, reported Express News.
Khan said that Orakzai was discharged from the hospital after receiving medical aid.
Rescue teams immediately reached the site of the explosion.
Police initially said that a generator had exploded but the Bomb Disposal Squad soon confirmed that the blast was caused by an explosive device.
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