The hand grenade was thrown at the Muttahida Qaumi Movement (MQM) camp in in Orangi Town area where a membership drive was going on, police said.
"Three MQM MPAs Mohammad Hussain, Sheikh Abdullah and Saifuddin Khalid are among the wounded," MQM leader Wasay Jalil said.
He said the explosion took place when a large number of people had gathered at the camp set up inside a building compound.
At least 20 people were wounded in the attack, police said.
Jamaat-ul-Ahrar - a splinter group of the Tehrik-i-Taliban Pakistan (TTP) -- claimed responsibility for the attack.
Jamaat-ul-Ahrar's spokesman Ehsanullah Ehsan told Dawn channel that MQM and other political parties who are thriving on the anti-Taliban agenda are on their hit list.
He said that the attacks on Pakistan Peoples Party (PPP) and Awami National Party (ANP) besides MQM would continue as the militant outfit has renewed its war against these parties.
MQM chief Altaf Hussain has condemned the attack, describing it as a cowardly act.
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