According to sources, an event was taking place at Jamia Islamia Miftah-ul-Uloom when a blast occurred outside the seminary. The explosive device was strapped to a bicycle present beside the seminary gate.
The bomb was detonated outside the Islamic seminary as a degree ceremony for students was being held inside, DIG Operations Qazi Abdul Wahid told reporters.
Private guards resorted to aerial firing to disperse the crowd that gathered at the blast scene and hampered rescue work.
Rescue efforts are still underway while the area was cordoned off by the security officials and bomb disposal squad.