The boy, Sol Masih, who was a toy seller, was passing by when the Taliban suicide bomber struck a police team yesterday.
Masih succumbed to his injuries at the Lahore General Hospital (LGH) today, LGH's Dr Ejaz Ahmed said.
The condition of three of the 60 injured is still critical, he said.
A suicide bomber on a motorcycle approached the police contingent deployed at the anti-encroachment drive outside the Arfa Karim Tower, near the chief minister's Model Town residence, and blew himself up.
The Tehreek-i-Taliban Pakistan (TTP) claimed the responsibility for the attack.
The Lahore police chief said initial investigation showed that the bomber used some 10-kg explosive in his suicide vest.
Prime Minister Nawaz Sharif and Army Chief Gen Qamar Javed Bajwa condemned the blast and vowed to continue war on terrorism in Pakistan till elimination of the last terrorist.
Counter-Terrorism Department (CTD) of Punjab police has registered a case against four people, including the suicide bomber.
In April, six persons were killed and 15 others injured when a suicide bomber targeted a population census team in Lahore's Bedian Road.
In February, a suicide bomber killed 14 people, including senior police officers, near the Punjab Assembly here.
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