Police said the blast occurred in the Daudzai area near the northwestern provincial capital Peshawar on Friday.
Information minister for Khyber Pakhtunkhwa province, Mian Iftikhar Hussain, confirmed the death toll and condemned the attack.
No group has claimed responsibility for the act of violence so far. The militants, however, have carried out hundreds of similar bombings across the country.
Peshawar, a border city, has suffered scores of bomb attacks over the past five years.
The attack came one day after a bombing attack in the city of Quetta in the southwestern Baluchistan Province killed at least 15 people and wounded 35 others.
More than 35,000 Pakistanis have lost their lives in bombings and other militant attacks since 2001 when Pakistan entered an alliance with the US on the so-called war against terrorism.
Since late 2009, there has been a surge in militant attacks in Pakistan, where thousands have been displaced in the aftermath of the militancy sweeping across the country.
AGB/JR/AZ
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