The blast -- second in less than a week -- occurred in an apparel warehouse in the city's busiest southern business district, Sharjeel Kharl, a city police chief, told reporters.
TV images showed giant plumes of fire and thick smoke billowing upward from the warehouse as rescuers were shifting the injured to the ambulances.
A police van and several other vehicles were completely or partially damaged in the blast.
According to initial investigations, the bomb was planted in a motorbike parked outside the warehouse.
Investigators believe the police van could be the target of the blast.
No group has claimed responsibility for the blast.
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