A bomb with 500 grammes of explosive was planted near the factory in Tauheedabad area of Yakatoot in Peshawar. The factory belonged to Haji Alem.
Officials of the Bomb Disposal Squad (BDS) who inspected the site declared that the explosion was caused by a bomb. It had been planted near the shoe-factory, just across from the Tauheedabad police post.
There was no reports of any damage to either life or property as a result of the explosion.
The immediate reason for a bomb being planted next to the factory was unclear. However, several businessmen in Peshawar have been targeted by militant and criminal groups in recent months for failing to give into extortion demands.
Police officials say an investigation is under way in the case.
It had earlier been reported that the explosion was possibly caused by a hand grenade that had been hurled at the police post.
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