The bomber blew himself up in Parachinar's Shandak Bazaar.
The blast left at least six people dead and 38 others injured, officials said.
The condition of many of the injured people was said to be critical. They were to be shifted to Peshawar for treatment.
Security forces have cordoned off the area while emergency services have been dispatched to the site.
The administration has declared an emergency at all hospitals in the area.
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Interior Minister Chaudhry Nisar ordered an inquiry report.
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