The bombing took place in the upmarket University Town area of the northwestern city, where many non-government organizations are also based.

"We have two bodies of paramilitary soldiers and ten wounded have been admitted to hospital," said Farhad Khan, a spokesman for Khyber Teaching Hospital where the casualties were taken.

A senior police official, Mohammad Ejaz Ahmed, said it appeared to be a suicide bombing.

He said other paramilitary soldiers in the area fired in the air in panic after the bombing.

No group has yet claimed responsibility, but the Pakistani Taliban has carried out such attacks in the past.

Iran has been in talks with Pakistan government over security issues in border areas.

Five Iranian border guards were abducted in Jakigour region of Iran’s Sistan and Baluchestan Province on February 6 and taken to Pakistani territory.

The so-called Jaish-ul-Adl terrorist group has claimed responsibility for the abductions.

On October 25, 2013, Jaish-ul-Adl killed 14 Iranian border guards and wounded six others in the border region near the city of Saravan in Sistan and Baluchestan Province.

SHI/SHI