Civil secretariat employees were on board the bus when explosion occurred.
According to details the explosion took place within the limits of Dawoodzai police station. SP Rural while confirming the blast said 8-kilogram explosives were used in the attack.
Rescue teams reached the site of the incident and injured people were rushed to Lady Reading Hospital. At the blast site, the back of the colorfully decorated bus was torn apart, leaving a mass of snarled metal.
Peshawar is on the edge of Pakistan`s tribal region and has been targeted by many militant attacks in the past five years. Violence has declined in the past year, but attacks still occur relatively frequently.