According to the Dawn, the blast took place outside the Christian Colony in Chaman.
The injured were taken to the Chaman Hospital for medical assistance.
"The blast smashed the windows in nearby houses," SHO Gul Mohammad said, adding the explosion was caused by a hand grenade lobbed near the colony's gates.
The police are further investigating the motive and nature of the explosion.
This is reportedly the third deadly terrorist attack in the country amidst celebrations of Eid Miladun Nabi.
Yesterday, while an improvised explosive device (IED) blast killed five in South Waziristan, at least 11 people were killed and several others injured after terrorists stormed the student hostel inside the Directorate of Agriculture Extension on University Road, Peshawar. (ANI)