In pictures: Casualties feared as explosion, gunfire rock Kabul

The rush-hour explosion sent a plume of smoke into the air above the Puli Mahmood Khan neighbourhood of the Afghan capital and shook buildings up to two kilometres (1.2 miles) away, with an AFP reporter saying he could hear gunshots after the blast.

At least 53 people suffered injuries in an explosion that rocked the city of Kabul on Monday, said the Public Health Ministry's spokesman Wahidullah Mayar. The attack was carried out by the Taliban. However, Khama Press has reported that the explosion has killed at least 10 people and wounded over 50 others.

The heavily-secured neighbourhood is home to some military and government buildings, including one shared by Afghanistan's intelligence agency and defence ministry, as well as the Afghan Football Federation and the Afghan Cricket Board.

Health ministry spokesman Wahidullah Mayar tweeted that 53 wounded patients had been taken to hospital, warning that the figures could rise.

An exchange of fire between two terrorists and Afghan Security forces broke out after the explosion in Kabul city. Two terrorists were firing at security forces from an under-construction building following the blast, Tolo News reported citing official sources. Meanwhile, security forces cordoned off Pul-e-Mahmood Khan area.

The explosion came two days after the Taliban and the US began their seventh round of talks in the Qatari capital of Doha, as Washington eyes a breakthrough before Afghanistan's September presidential election.