The incident occurred in Kacha Pakka area on the Hangu Road in Kohat district, about 50 kilometres south-west of provincial capital Peshawar.
"Two people were killed and three injured in the attack," said police official Muhammad Siddique from district police control office.
He said the explosive material was fixed with motorcycle parked in a busy market area.
It was not clear whether it was a time bomb or detonated with a remote control device.
So far nobody took responsibility of the attack but Taliban are active in the areas and frequently target the civilians and law enforcing agencies.
Pakistan is facing rising militants' threat.
President Asif Ali Zardari's chief of security was killed in a suicide attack in southern port city of Karachi yesterday.
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