At least three people were killed and over 25 people injured in a bomb blast in Lahore’s Old Anarkali area, Aaj News reported on Thursday.
A number of motorcycles were damaged while shops were also burned in the explosion.
A police official said the explosives were planted near the motorcycles parked in the area.
Rescue teams reached the site while the injured are being moved to Mayo Hospital. Orders were also issued to impose an emergency in the hospital.
Earlier, the police had said that a cylinder exploded at a shop.
However, a bomb disposal squad was called in to inspect the site for explosives. The area has been cordoned off and evidence is being collected.
Punjab Chief Minister Usman Buzdar has taken notice of the incident and sought a report. The CM has instructed that the best medical facilities should be provided to the injured.
In a statement, the CM condemned the blast and said that those responsible would be arrested and justice would be ensured.
"This incident is aimed at sabotaging the atmosphere of law and order," Buzdar said.
The Prime Minister's Office, in a statement, also sought a report from the Punjab government.
Interior Minister Sheikh Rashid has also condemned the blast. On Tuesday, the interior minister had warned that there was a need to stay alert of terrorism-related incidents.
"We have received a kind of signal that terrorist incidents have started happening in Islamabad. This is the first incident of the year and we need to be very alert," Rashid said.
Pakistan Muslim League-Nawaz (PML-N) President Shehbaz Sharif and PML-N Vice-President Maryam Nawaz Sharif have also prayed for those killed and injured in the incident.