The bomb went off in Mama Khel area near Badhaber region in the outskirts of the city of Peshawar on Sunday as mourners gathered around the grave of a local woman, local officials said.
Just after the blast, security forces cordoned off the area and shifted the injured people to Lady Ready Hospital in Peshawar.
The death toll is expected to rise as most of the injured people are said to be in critical condition.
The bomb was reportedly targeting local politician Khushdil Khan, who attended the funeral.
The politician, however, remained unhurt as he had left the location minutes before the blast.
Khushdil is a leader in the Awami National Party (ANP), the dominant political party in the Khyber-Pakhtunkhwa province, who has raised a tribal militia to combat militants in his area.
No one has claimed responsibility for the attack, but government officials quickly pointed the finger of blame at the Taliban.
MS/MSH/AO/MA
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