A traffic warden and two other people sustained injuries in the explosion. They were shifted to Peshawar’s Lady Reading Hospital for treatment.
Soon after the blast, security forces cordoned off the area and started a search operation in the area.
Police said about 2.5 kilograms of explosive material had been used in making of the bomb.
Peshawar and rest of Khyber Pakhtunkhwa has seen scores of attacks on civilians as well as law enforcement personnel in the past.
Seven people were killed in an Improvised Explosive Device blast in Upper Dir earlier this month.