According to police sources, the time bomb was allegedly planted in a fruit box and went off when the market was at its most crowded.
The bodies of the dead and the injured have been shifted to the nearest hospital.
Hospital sources have warned that many casualties are in critical condition.
It is the second bomb blast to hit civilians over the past 24 hours in Pakistan.
At least 17 people were killed and more than 50 injured in another bomb blast in a passenger train in Sibi railway station in Bolochistan province on Tuesday.