Some 40 people were also injured.
Local officials said they believed the bomb had been hidden underneath the
rear of the bus.
The attack came one day after a remote-controlled bomb killed at least 15
people outside a madrassah in the south-western city of Quetta.
The nuclear-armed country of 180m people is the front line of the war against
al-Qaeda.
It has been battling a home-grown insurgency since 2007, which has claimed
some 5000 lives.
Iftikhar Hussain, the information minister for Khyber Pakhtunkhwa province,
where Peshawar is the capital, said the government would continue to target
the militants if they did not give up their fight.
“For the sake of protecting people, we are always ready for negotiation,
but if the terrorists are not ready to stop, the only option left for the
government is to go for a massive operation against the terrorists wherever
they are,” he said.
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