The incident took place in Wana, the main town of troubled South Waziristan district, where the military is battling Taliban militants.
Read: Pakistan Army major killed in North Waziristan checkpost attack
"At least five soldiers were wounded when a bomb planted on a roadside exploded as a military convoy passed," a local security official told AFP.
Security forces immediately launched a search operation and called in air support, he added.
Read: Time to bring FATA home
Local administration and intelligence officials and residents said helicopters bombed the market at Wana by-pass road and later bulldozers razed dozens of shops belonging to suspected militants.
A curfew has been imposed in Wana and military helicopters were hovering above, they said.
Officials say more than 3,500 militants have been killed since the launch of the latest offensive in neighbouring North Waziristan last year.
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