The explosion ripped through Zakkakhel Bazar near Landi Kotal area of the militancy-plagued Khyber tribal region.
A security official said two paramilitary soldiers and two civilians were killed in the blast.
"The civilians were the members of Tauheed-ul-Islam, a peace committee," he said.
Peace committees were set up to help government troops fight the Taliban.
No group has taken responsibility of the attack that came just two days after a deadly assault at Wagah border near Lahore killed at least 61 people.
Khyber is controlled by militants of Lashkar-e-Islam group of Mangal Bagh.
The military launched its operation against the militants in Khyber region last month and so far more than 50 terrorists have been killed.
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