According to the reports, the blast took place near old hospital. The explosion partially damaged the facility in the Shia Muslim-dominated Hangu district, Khyber Pakhtunkhwa province, according to police.
Investigators believe it was a sectarian attack as most of those who use the hospital are Shias.The rescue work is being held while law enforcement agencies have cordoned off the area.
The explosion occurred when explosive laden-vehicle hit the hospital wall mainly used by the Shia Muslims.
Shia Muslims form a majority of the population of the region and thus remain a constant target for extremist pro-Taliban militants in the volatile region.
Several Shia religious gatherings have been targeted in different parts of the country over the past few months.
Since the 1980s, thousands of people have been killed in sectarian-related incidents in Pakistan.
In a separate development, hundreds of people have held anti-US protests for a second time in two consecutive days.
Protesters have condemned non-UN-sanctioned US drone attacks on Pakistan's tribal areas.
US drone strikes have killed two thousand people in northwest Pakistan since 2004. These airstrikes have intensified since US President Barack Obama took office in 2009.
Washington claims the attacks target militants, but figures show most of the victims are civilians.
Militant attacks, unsanctioned drone strikes and political unrest have claimed the lives of over 4,000 people throughout Pakistan since 2007.
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