At least two people were killed and seven others were injured in a powerful explosion near a restaurant in northwest Pakistan's Peshawar on Saturday, local TV channel reported.

The blast hit office building of lawyers and other professionals and the restaurant on University Road in Peshawar, the capital of North West Frontier Province, the private TV GEO News reported.

It was not yet cleared what was the cause of the blast. However, the eyewitnesses said that it was a car bomb blast as a suspected vehicle was parked outside the building.

Many tenants stuck in the building as it caught fire after the blast and later were evacuated by the local people and rescuers arrived at the scene soon after the incident, the TV said.

Police have also cordoned off the area while the firefighters are engaged in extinguishing fire.

Witnesses said that soon after the blast the building caught fire and the smokes are seen billowing from the building. The firefighters are busy in extinguishing the fire.

The relief teams including Fire Brigade and police and ambulances arrived on the spot. The injured are being rushed to the nearby Lady Reading Hospital.