The blast was so powerful that it damaged several shops near the eastern cityâs famous Anarkali bazar, witnesses said. TV footage showed burning motorcycles in a crowded bazar, as the wounded cried for help.
No one immediately claimed responsibility for the bombing, but it comes days after the Pakistani Taliban shot dead three police officers in separate attacks in the capital, Islamabad, as well as the northwest region bordering Afghanistan.
The Pakistani Taliban, who have been emboldened since the Afghan Taliban seized power across the border in Afghanistan, warned this week they could carry out more attacks in the near future.
Prime Minister Imran Khan condemned the bombing in a statement, urging local authorities to provide the best possible medical facilities to those who were wounded in the blast.