More than 50 others were reportedly injured in the blast, which took place in the Khyber tribal region near the main border crossing point of Torkham.
Administrator Khalid Mumtaz said hundreds of people were in the bazaar when the parked car exploded. TV footage showed the wreckage of the car and local residents rushing to help take the victims to hospital.
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Hide AdNo-one claimed responsibility for the incident, but the suspicion fell on Pakistani Taliban.